China Abrasive Materials Weekly Price (23-29 JAN): Corundum market to remain stable after CNY
During the Chinese New Year holiday, white corundum enterprises are overall in shutdown, coupled with the shutdown in logistics, the market is basically in a closed stage. Most enterprises officially resumed production from January 29th, and starting rate of the white corundum smelting furnace will pick up. However, as downstream enterprises still keep a small amount of stockpiling, the procurement enthusiasm will relatively weak before the middle of February. It is expected that white fused alumina market will be mainly stable in short term.
The domestic brown corundum market was running steadily during the holiday. Influenced by the high inventory level before the festival and the poor demand before the festival, some enterprises suspended production during the Spring Festival this year. Domestic logistics and transportation were basically stopped during the holiday, and most enterprises in production have accumulated storage. Since January 27th, the market has revived, and trading atmosphere has been enhanced. It is expected that the brown fused alumina market will remain stable in the short term.
During the holiday, silicon carbide enterprises were mostly in production to maintain the pre-holiday production rhythm, with continuous power supply to smelting furnaces and shut down in the processing lines. As the smelting cycle of silicon carbide is long, so the seven-day long holiday has little impact on the supply and demand. After the holiday, enterprises are to maintain the offer before. With the announcement of the business electricity bill, the rising electricity costs are confirmed. It is estimated that silicon carbide prices may have room to rise under cost pressure.