Bauxite prices track higher, Chinese alumina prices track lower....

Bauxite prices track higher, Chinese alumina prices track lower. CBIX rose 3.5% (US$1.7/dmt) over the week, to close at US$49.4/dmt. Higher ViU-priced cargos originating from Guinea and Australia were offset marginally by lower ViU priced cargoes from Brazil and Malaysia, resulting in a net increase to the price. Guinean material is now consistently flowing through to the CBIX calculation, given the significant increase in volumes now being exported.

Grade variations between sources in Guinea are evident, given the different regions of Guinea being mined for export (variations in grade between Guinean sources are compensated for in the CBIX calculation methodology).

Malaysian FOB prices were quoted at US$26/dmt for unwashed material (CBIX equivalent US$38.5/dmt). Washed material is priced at approximately US$37/dmt FOB.

Chinese domestic alumina prices continued their fall, with the North down 4.1% (RMB74/t) over the week to RMB1,740/t (US$260/t including VAT). Prices in the smaller South market, however, are yet to react to capacity restarts in the north and remain unchanged at RMB1,820/t (US$272/t including VAT). We expect to see lower prices flow through to the south over the next few weeks.

Panamax freight rates edged higher over the week, but Capesize rates were down sightly.