China Abrasive Materials Weekly Price (2-9 AUG): Transport blockade exacerbates out-of-stock problem
According to Antaike research, as of August 9, China’s alumina spot index was RMB 2566/ton, and the national average alumina price was RMB 2901/ton. The alumina price continued to rise this week. Rising alumina prices mean that the production cost of white corundum has increased.
Affected by the continuous increase in the price of raw material alumina, most white fused alumina manufacturers raised their product quotations by about RMB 80/ton this week. It is expected that in the coming week, the price of white fused alumina may continue to rise due to the continuous increase in production costs.
This week, considering that the spot supply of the brown fused alumina in Henan and Guizhou has been continuously tightening, most of the brown fused alumina manufacturers raised their product quotations by about RMB 50/ton. It is expected that in the coming week, supported by high costs, the price of brown fused alumina may have room for further increase.
This week, due to a slight drop in the price of raw materials, some black silicon carbide manufacturers have subsequently lowered their product prices slightly by about RMB 50/ton. It is expected that in the coming week, as the current raw material prices are still high, most black silicon carbide manufacturers may tend to stabilize product prices.
This week, due to the high price of raw materials and stabilization, most green silicon carbide manufacturers are willing to stabilize the price. It is expected that in the coming week, green silicon carbide prices may still hold firm.
5. The latest outbreak of Covid-19 resulted in transport blockade
New Covid-19 cases have been reported in 17 provinces in China. As of August 6, 17 provinces have reported existing local confirmed cases or asymptomatic infections. There are 7 high-risk areas and 184 medium-risk areas across the country.
The government has tightened travel restrictions, such as road closures, enhanced nucleic acid testing, and a 48-hour nucleic acid test certificate required before delivery of goods. Due to the prevention and control of the epidemic, the number of highway junctions has increased to 84, and the transportation of raw materials in many places in China has been affected.
According to industry insiders, transportation costs have also risen recently, and transportation blockades may exacerbate concerns about shortages.