Bauxite Price Trend

Bauxite Prices December 2023

The price of bauxite in the United States for Q4 2023 witnessed a consistent price hike owing to escalated demand from the automotive industry. The disruption in the Red Sea and Panama Canal trade routes, leading to a subdued supply of bauxite overseas, also contributed to the market growth. Moreover, the rising attacks from Houthi rebel groups and heightened price rates in Australian mines favored the market growth. The quarter ended with a price of 48 USD/MT for bauxite in the USA.

The price trend for bauxite in China saw an increase, reaching 69 USD/MT in December 2023. It is due to the government’s plan to support battery foil projects, decreased product supply, and the heightened demand for bauxite from downstream industries, like aluminum.

German bauxite prices rose to 50 USD/MT in the last month of Q4 2023, influenced by increased product demand in the battery foil industry and the establishment of government plans that supported the setup of new battery foil industry projects. Moreover, the reduced supply of bauxite because of restricted mining activities in some regions and rising demand from the automotive industry further fueled the rising price trends.

Brazil’s bauxite prices experienced a positive trajectory in Q4 2023 due to low product supply across the globe and reduced mining activities. Moreover, the increased layoffs by the Aluminum Company of America (ALCO) and the consistent demand from alumina refineries, domestically and globally, supported hikes in prices. As a result, the bauxite prices in Brazil reached 56 USD/MT, by the end of the quarter.

Bauxite Price Trend, Market Analysis, and News

IMARC's latest publication, “Bauxite Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” presents a detailed examination of the bauxite market, providing insights into both global and regional trends that are shaping prices. This report delves into the spot price of bauxite at major ports and analyzes the composition of prices, including FOB and CIF terms. It also presents a detailed bauxite price trend analysis by region, covering North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The factors affecting bauxite pricing, such as the dynamics of supply and demand, geopolitical influences, and sector-specific developments, are thoroughly explored. This comprehensive report helps stakeholders stay informed with the latest market news, regulatory updates, and technological progress, facilitating informed strategic decision-making and forecasting.

Bauxite Market Analysis

The global bauxite market size reached US$ 16.2 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 20.8 Billion, at a projected CAGR of 2.80% during 2023-2032.

• The widespread utilization of aluminum in various industries, owing to its lightweight nature, corrosion resistance, and high conductivity, is favoring the market growth. As the market for aluminum surges, projecting a growth rate of 4.71% annually, the demand for bauxite will also grow. Also, China's aluminum production in July 2023 increased to a staggering 3.568 million tonnes. In the United States, since 2021, Aluminum Association member companies have invested approximately $6 billion in domestic manufacturing operations, including new greenfield facilities, propelling the continued demand for bauxite.
• The bauxite demand is further amplified by the heightened utilization of aluminum in the automotive sector to improve fuel efficiency and minimize carbon emissions. In 2020, the United States exported 1.4 million new light vehicles and 108,754 medium and heavy trucks, worth a combined value of over $52 billion, to more than 200 markets globally, intensifying the demand for bauxite to create lightweight vehicles. Moreover, the Indian passenger car market was valued at US$ 32.70 billion in 2021, and it is expected to reach US$ 54.84 billion by 2027 with a growth rate of 9% annually.
• Bauxite is also becoming increasingly popular due to aluminum's extensive use in the packaging industry for food and pharmaceutical products. With growth in the food and pharmaceutical packaging industries, the demand for bauxite is also expected to surge in these sectors. According to IMARC Group, the food packaging market is expected to reach US$ 611.6 Billion by 2032, exhibiting a growth rate of 5.1%. Also, the pharmaceutical contract packaging market is estimating a growth rate of 6.8% annually.
• In addition, bauxite production is showing an upward trajectory as a result of aluminum's growing use in renewable energy infrastructure. The growing adoption of renewable energy solutions worldwide is also boosting the consumption of bauxite for producing aluminum. The India renewable energy market is anticipated to reach US$ 46.7 Billion by 2032, with a growth rate of 8.71%. Regionally, in 2022, 22.5% of the energy consumed in the European Union (EU) was generated from renewable sources and is expected to grow further to meet the new target of 42.5% for 2030, according to the European Environment Agency.
• The market for bauxite is also positively influenced by the ongoing demand for consumer electronics, that utilize aluminum for its aesthetics and heat dissipation properties. India’s domestic production of electronics has increased at a CAGR of 13% from $49 bn in FY17 to $101 bn in FY23. Also, the country's electronics exports are anticipated to reach $120 bn by FY26, increasing the use of bauxite in the near future.
• The bauxite market share is further being reinforced by the rising urbanization and the demand for infrastructure and urban mobility solutions that use aluminum. According to the United Nations, approximately 68% of the general population will reside in urban areas by 2050 across the globe. Also, it is projected that India will add 416 mm urban dwellers and China 255 mm by the end of 2050. This data depicts an expected demand for bauxite in the foreseeable years.

Bauxite News

The report covers the latest developments, updates, and trends impacting the price of bauxite, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, technological innovations, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the bauxite price trend.

Latest developments in the bauxite industry:

• In February 2023, Norsk Hydro ASA announced its collaboration with Wave Aluminium to establish a bauxite waste recovery plant in Brazil. The project is designed to process 2-4 million tonnes of bauxite residue per year. It will support Hydro’s target of achieving 10 percent utilization of bauxite residue generation by 2030 and eliminate the need for new permanent storage of bauxite residue by 2050.
• In March 2022, South32 Limited acquired an additional stake in Mineracao Rio do Norte (MRN), a firm that operates the largest bauxite mine in Brazil. The company already owned 14.8% of MRN and bought an additional 18.2% from Grupo Alcoa. The acquisition takes our ownership of the mine to 33 per cent and secures the bauxite requirements for the integrated aluminum supply chain in Brazil.

Product Description

Bauxite is a primary ore of aluminum that is widely recognized for its significance in the production of aluminum metal. It is composed of a mixture of minerals, such as gibbsite, boehmite, and diaspore, and impurities like iron oxides, clay minerals, and silica. Bauxite is distinguished by its reddish-brown color, but its appearance can vary based on the types and concentrations of minerals present. Bauxite is categorized into lateritic and karst variations.

It finds application in the manufacturing of aluminum products, refractory materials, cement, abrasives, and alumina refineries. Bauxite is also instrumental in the production of aluminum foil, cans, construction materials, automotive parts, electrical applications, and as a desiccating agent. It offers several benefits, such as its abundance, accessibility, cost-effectiveness as a raw material, lightweight nature, corrosion resistance, and recyclability.

Regional Coverage

The report provides a detailed analysis of the market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of FOB and CIF prices, as well as the key factors influencing the bauxite price trend.

Global Bauxite Price

The report offers a holistic view of the global bauxite pricing trends in the form of bauxite price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price levels but also provides insights into historical price of bauxite, enabling stakeholders to understand past fluctuations and their underlying causes. The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed bauxite demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Bauxite Price

The European region experienced a bullish price trend due to various factors. The first month of the quarter saw high prices owing to decreased product supply globally and rapid operational changes in ALCOA, Australia. In addition, the second month of the quarter showcased a positive trajectory due to reduced mining activities and restricted product supply by key companies. In December, the increased demand for bauxite from aluminum refineries and the automotive industry favored the price growth.

This analysis can be extended to include detailed bauxite price information for a comprehensive list of countries.

North America Bauxite Price

The North American bauxite prices showcased an upward trajectory in the last quarter of FY 2023. The increased product demand from the automotive sector and limited supply from mining nations led to the hike in prices. Also, the disruptions in the trade routes of the Red Sea and Panama Canal affected to supply of bauxite, directly impacting the price rates.

Specific bauxite historical data within the United States and Canada can also be provided.

Middle East and Africa Bauxite Price

The bauxite market in the Middle East and Africa (MEA) region witnessed an upward trajectory due to several factors. The growth in demand for bauxite in the automotive sector and aluminum refineries, coupled with low supply across the globe, influenced the increase in price. Moreover, the operational changes in ALCOA, Australia, that affected product output contributed to price growth. Along with this, the continued disruptions in trade routes of the Red Sea and Panama Canal boosted price rates.

In addition to region-wise data, information on bauxite prices for countries can also be provided.

Asia Pacific Bauxite Price

Bauxite pricing in the Asia Pacific region rose due to strong product demand from downstream enterprises, like aluminum refineries, and low supply from major mining nations worldwide. Moreover, increased layoffs in ALCOA, Australia, which affected the output of bauxite, supported the upward trend in prices. The government’s plan to establish new battery foil projects in the region that use bauxite also contributed to the price growth.

This bauxite price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Bauxite Price

In the last quarter of 2023, the price of bauxite in Latin America witnessed an upward trend. It was because of restricted product supply across the globe and heightened demand from various downstream industries. The rapid change in ALCOA’s operations, which led to layoffs in the company, also affected the output of bauxite. Moreover, the heightened product demand from aluminum refineries and the automotive industry for electric vehicle (EV) production strengthened the hike in prices.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of bauxite pricing, covering global and regional trends, spot prices at key ports, and a breakdown of FOB and CIF prices.
• The study examines factors affecting bauxite price trend, including input costs, supply-demand shifts, and geopolitical impacts, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The bauxite price charts ensure our clients remain at the forefront of the industry.