China Abrasive Materials Weekly Price (11th-17th February)
Abstract: Abrasive grain market resumed after Chinese new year festival, black silicon carbide prices led the rise
With the end of the Spring Festival holiday, the operating rate of white fused alumina smelting enterprises in Henan's Xingyang area has rebounded significantly, up to 80%; Henan Shangjie area is still in suspension due to large environmental supervision; white fused alumina smelting enterprises in Shandong Liaocheng area, ate also unable to resume production due to faulty maintenance of the power supply unit in the industrial park. In summary, although the overall operating rate of China's white fused alumina smelting enterprises have rebounded slightly, it is still at a low level. The enterprises are basically zero spot stocks. Therefore, due to the shortage of spot, the price of white fused alumina will still be at the high point.
This week, China's brown fused alumina upstream and downstream enterprises began to return to the market with the end of the Spring Festival holiday, but due to the environmental protection and control of the heating season and the tight supply of raw materials, the current operating rate of China's brown fused alumina smelting enterprises is still less than 30%. Most of the companies are still delivering the orders before the festival, and the inventory is low.
In addition, although the downstream enterprises of brown fused alumina have started construction, there is no obvious warming trend in the market. Or because the downstream enterprises are still digesting orders before the holiday, so it is mainly based on the market price trend. In summary, the current Chinese brown fused alumina production enterprises are generally in the state of low operating rate, low inventory and high production cost, so the market price of brown fused alumina is still dominated by high levels.
1.3 Black Silicon Carbide
Affected by the shutdown of black silicon carbide in Gansu, the current enterprises are in low inventory or even zero inventory. Gansu Kuanggou is a region with large capacity of silicon carbide in Gansu and even the whole country. The impact of this shutdown has gradually emerged with the purchasers started work after new year holiday. At present, the mainstream price of China's black silicon carbide 98% min original block is increasing by about 200 yuan / ton before the Spring Festival holiday, and it is expected that there will be a 100 yuan / ton increase in the next week.
In addition, there is currently no notice of resumption of production in Gansu. Due to the convening of the national grand event in March, many industrial companies speculate that Gansu enterprises are less likely to resume production in February. From the current supply and demand relationship, the rise in silicon carbide prices has become inevitable.
1.4 Green Silicon Carbide
Domestic major green silicon carbide producers are still in a state of suspension, and the supply of green silicon carbide raw blocks will resume in early March.