The price of aluminum raw materials may rebound in the second half of the year: bauxite

The cost of electrolytic aluminum is as follows: 40.3% alumina, 33.0% electricity, 11.8% prebaked anode, 1.8% other excipients, and 13.2% financial and labor. The following is a breakdown of the first half of each cost and a forecast for the second half of the year.

Bauxite: According to data from the General Administration of Customs of China, the number of imported bauxite in China in the first quarter of 2018 was 20.504 million tons, a year-on-year increase of 46.6%. The large increase in the number of bauxite imports was mainly due to the increase in imports from Guinea, which increased by 118.7% year-on-year in the first quarter, accounting for 51.8% of the total imports.

In terms of price, as of the end of June 2018, the intermediate price of Australian bauxite imports was US$45/ton, and the price increased by 4.6% year-on-year.

As of the end of June, the domestic bauxite price was 280 yuan / ton, an increase of 27.3%. The domestic and international price trends reflect the difference in supply. Due to the remediation of Shanxi bauxite and the decline of national grades, the supply is relatively tight. However, due to the rapid increase in the number of exports from Guinea, the supply is relatively abundant. In the future, with the opening quota of Indonesian bauxite, it is expected that the supply of overseas bauxite will be further relaxed, and the price of bauxite is not expected to increase significantly in the second half of the year.