• JCT Abrasives

China Abrasive Materials Weekly Price (19-25 Oct): Large-scale of WFA production in Henan is suspend

1. White Fused Alumina

This week, due to the government's environmental protection control, starting from October 19, most white fused alumina production enterprises in Henan have suspended production, and it is difficult to confirm the resumption date. As most production companies still hold inventory, market participants predict white fused alumina price may continue to remain stable in the next week.

2. Brown Fused Alumina

This week, the environmental began to tighten he production-limiting policy. In the brown fused alumina industrial clusters such as Yichuan, Sanmenxia and Dengfeng in Henan Province, factories have ceased production and required to have environmental protection transformation. Manufacturers are struggling to support, and they hope that the price of brown fused alumina will rise during the limited production season in autumn and winter.

In addition, due to the rising prices of raw materials such as natural gas and graphite electrodes, some brown fused alumina manufacturers are considering raising their quotations. However, due to the refusal of downstream customers, the price of brown fused alumina this week remained the same as last week, and whether the subsequent price increase could be accepted remains to be tested by the market.

In the meantime, due to the approaching heating season, more mature bauxite production enterprises are expected to stop production due to government environmental control policy, resulting in a tight supply of high-grade bauxite market. Therefore, some people in the industry predict that the price of China's high-grade mature bauxite may rise by about RMB 50/ton in the coming week.

3. Black Silicon Carbide

This week, as the inventory of black silicon carbide in the domestic market continues to decrease, factories are considering further price increases. Therefore, with the addition of factors such as rising production costs, the price of black silicon carbide in China may still be in the rising trend.

4. Green Silicon Carbide

This week, the domestic green silicon carbide market has a stable transaction performance, and manufacturers have no intention to adjust product prices, and product prices may continue to hold firm.

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