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        Analysis on China BFA in Oct. 2013

        Number of visits: Date:2013年11月21日 12:12

        Prices Stay unchanged for brown fused alumina (BFA) in Henan, Shanxi and Guangxi, but producers are suffering from higher production cost since bauxite price has been increased and the supply of higher grade bauxite turns to be tighter. Even though some BFA producers haven't increase their purchasing price for bauxite, it won't last long. In addition, in view of the weak market demand, some producers in Shanxi have suspended the production line of fractional sized BFA, only smelting and selling BFA lumps, so as to reduce operational risks.

        In Guangxi, electrictity price of dry season has been carried out, roughly RMB 0.1-0.2/Kwh higher than earlier period, which adds more production cost to BFA producers, even making some smelters, with less than 20,000 tons of annual capacity, in suspension and possibly to resume production next April. Producers with more than 50,000 tons of annual capacity maintain production as well we the price, despite of the increased cost.

        Prices of BFA in henan keep flat as well, and the good news is little change in cost, owing to local purchase of baucite at steady price. Recently, 0.19 billion tons of bauxite was found during the exploitating project of alumina underneath coal, west of Caoyao of  Mianchi county, which is likely to further increase bauxite supply in Henan.

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