Economic Observation Network According to CCTV Finance, based on recent reports from multiple foreign media outlets, Guinea, the world's largest producer of bauxite, is in talks with mining companies to control market supply and curb the downward trend in raw material prices.

According to sources,The Guinean government is likely to require mining companies to limit their export volume to the level specified in the mining planAccording to previous reports, the actual production capacity of some mining companies in Guinea far exceeds the production plan specified in their mining license. The Guinean government has considered limiting production, but the most feasible approach is to force companies to reduce their export volume back to the amount specified in their mining license.

The report states that as a raw material for producing alumina,The price of bauxite has almost halved since early 2025. One of the main reasons for the sharp decline in prices is the significant increase in supply, which far exceeds the market's ability to digestIt is reported that Guinea accounts for about 70% of the global bauxite supply, with an export volume of 183 million tons by 2025, a year-on-year increase of 25%. Some analysts suggest that if Guinea limits its annual export volume to around 150 million tons, it may stimulate the market and push up prices, but the extent is limited because export restrictions alone may not trigger a positive price response until Guinea miners actually reduce production. Additionally, if African supply decreases, countries such as Australia and Brazil may fill the gap.

The report pointed out that Guinea's move is also following the example of other countries. The comprehensive cobalt export ban implemented by the Democratic Republic of Congo in February last year triggered a global surge in cobalt prices, with cobalt hydroxide prices soaring 354%, reaching a new high since 2022. The government of the Democratic Republic of Congo subsequently replaced the ban with export quotas in October last year.

Editor: Ling Wenfang