China Abrasive Materials Weekly Price (10-16 JUL): BFA costs may be greatly reduced in Guizhou
Since July, as the downstream demand remained muted, which led to stagnant shipment and even higher inventory levels, white fused alumina manufacturers chose to suspend production, or restrict production. Due to the intense competition, the market price has been downgraded. It is expected that in the coming week, by the stabilized raw material alumina prices, white fused alumina prices will continue to run smoothly.
Recently, Guizhou has issued the new policy on electricity price mechanism, which will lead to a significant reduction in local brown corundum smelting cost and therefore enhance the competitiveness of brown fused alumina prices in Guizhou.
Although the downstream demand is weak, by the tightening supply of high-grade bauxite , production costs remain high, and enterprises also intend to firm prices. Supported by the cost, China's brown fused alumina prices will remain stable.
This week, after four consecutive months of downward adjustments, the black silicon carbide market continued the downturn trend. Although inventory level has been reduced, the market may continue to operate in a weak manner.
Affected by the weak demand this week, China's green silicon carbide prices are running in a downward trend.