China Abrasive Materials Weekly Price (16-22 MAY): Prices remain stable due to firm production cost
This week, China's alumina prices run strong, white corundum prices remained stable, but limited by the weak downstream industry demand, some enterprises in Henan Province had suspended production. If such situation continues, white fused alumina enterprises in Shandong Province will gain advantage due to the relatively low cost of electricity. However, this advantage may not exist long if there will be the price competition caused by the decline in market demand. It is expected that in the coming week, supported by the cost, white fused alumina price may be in stable operation.
This week, affected by the current economic situation, China's brown fused alumina market continues to be weak, the downstream demand has decreased sharply, some enterprises in Henan choose to reduce or stop production, and the rest of the enterprises in production are also difficult to operate. Guizhou area has some electricity cost advantage compared to Henan, but recently, as the local bauxite raw ore prices continue to rise, some enterprises are also impacted.
The current demand for downstream abrasives industry in China is slow to release, and it is expected in the coming week, by the strong support of production costs, China's brown fused alumina market prices will be stable operation in the short term.
This week, despite the request of some downstream enterprises to reduce prices, supported by the cost, China's black silicon carbide manufacturers stick to maintaining the prices. In the absence of inventory pressure, suppliers are more reluctant to reduce prices for sales. It is expected that in the coming week, black silicon carbide prices may be stable.
This week, due to the increase in the price of raw blocks, most of the green silicon carbide producers in China wanted to further increase the price, but were strongly resisted by the downstream enterprises. It is expected that in the coming week, the price of green silicon carbide will continue to rise due to the increase in production costs as the price of raw blocks is still expected to rise.