Prices for Chinese refractory bauxite started to decline at the end of 2011 as a result of excess licences for the year’s exports, with licence holders reportedly accepting orders at a loss prior to the 30 December expiry date.
Although refractory bauxite prices are falling, at present they are still within the range on IM’s prices database.
Producers reported falling demand for the refractory mineral in the second half of 2011 owing to a number of factors, including financial uncertainty in Europe and the US, and muted recovery in western construction markets.
While bauxite prices are coming off, andalusite prices are expected to rise by between 2-5% in the New Year on the back of increased demand from the refractory industry.
The reason for the price rise was partly attributed to Imerys putting up prices in 2012, but also to a rise in demand for andalusite...