Global Bauxite Prices Showcase an Inclining Price Trajectory Amid Healthy Purchases and Demand Disruption
- 20-Feb-2024 3:16 PM
- Journalist: Francis Stokes
In the first half of February, the price of Bauxite showed a rising price trend in the global market as the demand from the downstream Aluminium-based industries remains on a higher edge. The US, European, and other major nations governments are placing new deals and investments to increase the mining activity in the major mining nations to increase the mineral exploration activity, including Bauxite mineral extraction. The latest plans for infrastructural development and railway expansion in several countries have increased the manufacturing activity in the Aluminium extrusion and casting industries. Meanwhile, the trade disruptions through the Panama and Suez Canal have shown a lingering rate affecting the trade activity across the globe.
Guinea has proved to be a major asset in supplying Bauxite in the global market, after the supply halt from the Indonesian government. The major market players are planning to spend in Guinea’s Bauxite mine to increase the output rate amidst increasing downstream demand. The major global mining companies such as Rio Tinto and Chinalco have joined hands and signed new deals for the mining project in Simandou Mining Project in Guinea. In southeastern Guinea, the Simandou Mountains host a colossal mining venture worth USD 20 billion, poised to dramatically alter the global landscape of metal and mining industries, after the signing of this deal. Meanwhile, a surge in infrastructural consumption for Aluminium products forced the Saudi Arabian government to invest in the expansion of mineral exploration. The Saudi government announced an investment of USD 20 million for major mining and exploration of several minerals, including Bauxite. The mining activity has increased in Rio Tinto's Weipa operations, in Queensland, Australia, showing a rise of about 1.7% from the previous year. Additionally, in the Asian market, the Bauxite mining activity has also been pushed further. The major automotive player from Vietnam, Truong Hai Group Corporation (THACO), has also shown interest in the expansion of Bauxite mining and exploration, leading to an investment of USD 4.1 billion to the circular economy complex dedicated to mining and processing in Lam Dong Province.
Meanwhile, as the Bauxite demand surged amidst lower availability across the globe, Ghana has recently emerged as a major supplier of Bauxite for Chinese mills. According to the major market players, Ghana has been a supplier of at least 3 refineries in the Chinese province. Backing the Bauxite mining activity, the Ghana Integrated Aluminium Development Corporation (GIADEC) has forged a partnership agreement with the European Mytilineos Energy and Metals to jointly undertake the establishment of an alumina refinery within the country. This collaboration pertains specifically to Project 3A, one of four initiatives encompassed within the Integrated Aluminium Industry (IAI) situated at Nyinahin-Mpasaaso in the Ashanti Region. Per the terms of the agreement, Mytilineos, a Greek firm, will spearhead the development of a Bauxite mine and oversee the construction of a state-of-the-art alumina refinery.
According to ChemAnalyst, the price of Bauxite is anticipated to remain on a surging price trend across the globe as the availability in the local warehouses across several nations is expected to persist in a plunging trend. The increased freight charges and lead time amidst hiked downstream Aluminium demand have proved to back the rising price trend of Bauxite in the forthcoming month. The government’s push to increase mining activity will support the Bauxite market in the coming quarter.