The price of bauxite, the raw material required for producing aluminium, has surpassed the value of a tonne of iron ore for the first time, rallying to a record high on a supply crunch in Africa and surging demand from China.

Benchmark prices for standard Guinea grade bauxite climbed to $US112 ($176) a tonne last week, marking a 59 per cent increase since January, according to the latest price index compiled by Adelaide-based CM Group. Iron ore last changed hands for $US104.80 a tonne in the Singapore futures market.