Driven by high prices, Guinea's bauxite shipments surged, and the supply of imported bauxite reached record highs, leading to a clear surplus in bauxite. By the end of June, SMM data showed that port bauxite inventory had increased by approximately 9.5 million tonnes compared to the beginning of the year, and alumina refineries' bauxite raw material inventory had increased by approximately 6.5 million tonnes compared to the beginning of the year.
With a continuous surplus in bauxite and alumina refineries shifting from profitability to losses, leading to bargain down purchasing prices of raw materials, bauxite prices pulled back.
Due to the cost advantages of using domestic bauxite for production, the domestic bauxite market did not experience a surplus. However, as alumina profit margins narrowed, alumina refineries engaged in bargain down purchasing of raw materials. Under this pressure, domestic bauxite prices pulled back, with cumulative price drops of RMB 60 per tonne in Shanxi, RMB 30 per tonne in Henan, and RMB 100 per tonne in Guizhou.
The price pullback of imported bauxite was more pronounced. By June 30, 2025, the SMM CIF index for imported bauxite was reported at USD 74.21 per tonne, a decrease of USD 31.58 per tonne from the beginning of the year, representing a 29.9 per cent drop, and a decrease of USD 41.98 per tonne from the highest price point in H1, representing a 36.1 per cent drop. Breaking it down, the price of imported bauxite mainly went through the following five stages during the year:
