China Abrasive Materials Weekly Price (22nd -28th July): Corundum Price Hits The Lowest Point
This week, as the alumina oxide prices have fallen below the cost price of 2,600 yuan / ton, some white fused alumina producers began to actively reduce production due to negative losses. Therefore, some industry players expect that the downward trend of white fused alumina prices will end. In addition, since Zhengzhou will hold a national minority sports meeting in early September, the environmental supervision in the local and surrounding areas is gradually increasing. Starting from July, the smelting and sand making enterprises in the white fused alumina industry in Shangjie and Fuyang have begun. Suspension has occurred one after another. In the later period, the normal operation of the enterprise will become more and more difficult to stabilize.
It is expected that in the coming week, the price of white fused alumina will gradually hit the bottom line, and in the future, as the low operation rate of factories and the market supply decreases, the price of white fused alumina will once again rebound.
This week, the downstream demand for brown fused alumina in China is still sluggish, and the spot market is still in recession, with factories delivering of long-term orders. However, considering the strong production costs, the current price of brown fused alumina in the Chinese market continues to remain stable.
In addition, with the approaching date of the 11th National Minority Traditional Sports Games, the environmental protection situation in Zhengzhou and surrounding areas in Henan Province has become increasingly strict. The National Environmental Protection Inspection Group has become more and more secretive. The environmental protection inspection team no longer communicates with the local government in advance. Instead, they directly use the high-tech satellite remote sensing and drones to conduct environmental reconnaissance.
3. Black Silicon Carbide
This week, China's black silicon carbide market price continued to remain weak and steady. Although the demand in the downstream market remained weak, on the one hand, the price of raw materials anthracite was always firm. On the other hand, the situation of environmental supervision in Gansu was severe, only a few companies in the local area can maintain normal production under the environmental protection, energy consumption, safety departments’ repeated inspection. Therefore, the price of black silicon carbide remained stable.
4. Green Silicon Carbide
This week, the price of China's green silicon carbide market continued to run weakly. As the market supply rebounded, the delivery time was significantly shortened. In addition, the demand for green silicon carbide market is weak. There are three main reasons. First, the macroeconomic growth slows down, and the demand from steel and semiconductor industries is weakened due to reduced production. Second, overseas consumer stocks are more abundant and more wait and see. Third, foreign suppliers of green silicon carbide have seized some markets.