Dry Commodities
Bauxite
Bauxite is the principal ore used to produce alumina, with seaborne trade dominated by large-volume shipments into China.
MARKET REFERENCES
How the market commonly references price
There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.
- CFR China seaborne bauxite indices
- FOB Guinea / Australia market values
- Alumina-linked formulas in some term contracts
TYPICAL COMMERCIAL STRUCTURE
How physical pricing is often built
Physical cargoes may be priced against a seaborne CFR China bauxite index ± quality/origin differential. Some term contracts can incorporate an alumina-price linkage, with adjustments for available alumina, reactive silica, moisture and freight.
PRICE DRIVERS
What moves the physical differential?
- Available alumina
- Reactive silica
- Moisture
- Guinea / Australia supply
- Capesize freight
PHYSICAL TRADE
Commercial considerations
CFR China is a key delivered basis; FOB origin economics are commonly assessed through freight netbacks.
The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.
Market methodology reference: view source / methodology
PHYSICAL COMMODITY BROKERAGE
Discuss a Bauxite requirement.
Share the specification, quantity, origin or destination, delivery basis and timing.