China Hongqiao Group is looking to raise the annual limits on a bauxite supply deal involving its subsidiary, Well Harvest Winning. The company said the current limits may not be enough for its expected needs over the coming years. The supply agreement runs until 2033 and is with Indonesia-based Cita Mineral Investindo.
Bauxite is a key ingredient in aluminium production, and Hongqiao expects to require larger volumes as its operations continue.
Under the deal, the supplier sells bauxite at a benchmark price of USD 31.50 per dry metric tonne, with adjustments depending on ore quality and periodic reviews.
This increase does not change the agreement itself, but it allows Hongqiao to purchase larger volumes under the existing contract.
The move points to stronger expected demand for bauxite within the group’s aluminium business and highlights the importance of securing long-term raw material supplies.
Separately, the latest analyst rating on Hongqiao shares remains Buy, with a target price of HKD 45.