The Global Bauxite market witnesses an upward price trajectory amidst rising freight Charges

Santos, Brazil- In the first half of December, the price of Bauxite increased across the globe as the transportation charges via ships and cargo rose as the supply chain was disrupted through the Panama Canal. The two major shipping trade points - the Panama Canal, and the Bab-el-Mandeb Strait in the Red Sea – are simultaneously posing a threat to the effective trading activity for Bauxite in the Global market. Furthermore, the latest UN Climate Change Conference, COP28, held in the United Arab Emirates, has proposed new ways to promote the reduction in Carbon emissions across the globe.

The production of Bauxite has been in a declining trend in the major manufacturing nations, such as Guinea, Brazil, and Australia, amidst rising environmental concerns. The ongoing COP28 meeting has been a major focus among the market players, as the reduction in fossil fuel consumption has been a heated topic throughout the conference. In contrast, a few members are requesting not to completely phase out oil and gas usage as it currently has a few loopholes. António Guterres, the Secretary-General of the United Nations, has reiterated the appeal made by numerous developing nations, emphasizing that any agreement reached at COP28 to revamp the global energy system should be accompanied by adequate financial assistance to assist these nations in implementing such changes. This will substantially support the rising price trend of Bauxite.

Furthermore, the freight charges are also showing a volatile nature, amidst the Panama Canal and the Suez Canal disruption, due to drought and geopolitical factors, leading to a surge in shipping costs and delivery delays, majorly across China and other Asian countries. This backed the rise in Bauxite price as the Supply of Bauxite from Guinea to China and several other nations has been hampered. On the other hand, the demand from the downstream industries has been on a firm rise as the Aluminum-based industries expand their production line in major countries. In India, a Paneluxe factory opened in Hyderabad to produce green Aluminium profiles for modular furniture, resulting in a hike in demand for Bauxite. Additionally, Coast Aluminum and Monti Inc., have planned to boost manufacturing expansions and create jobs at New Mexico's international border in Santa Teresa. The Italian business Aluservice, which specializes in aluminum product research and development, has been acquired by SurTec, a leader in chemical surface finishing solutions. These have led to a rise in demand and therefore provoked the mills to increase the price for Bauxite across the globe.

According to ChemAnalyst, the price of Bauxite has been anticipated to remain on a rising trend amidst supply disruption across Major shipping routes. Moreover, a lowering mining activity regarding environmental concerns will lead to a damping inventory level for Bauxite in the international market. The demand from the downstream Aluminium industries is anticipated to be on an Incline trend, keeping the Bauxite market trend bullish.