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  • Writer's pictureJCT Abrasives

China Abrasive Materials Weekly Price (25-31JUL): Factory continue to wrestle with low profit margin

This week, because the downstream demand continues to sluggish, China's white corundum production enterprises are in the state of reduction or shutdown, and enterprises only maintain the most basic production operation. In the face of the current high cost, most enterprises may have reached the edge of the loss. It is expected that in the coming week, if the downstream demand still has not seen an improvement, white fused alumina prices will continue to run weakly stable.

This week, as bauxite and other raw materials prices have been high, most brown fused alumina enterprises in Henan Province have been shut down, and i enterprises in operation are also in a loss state. In Guizhou Province, due to the recent policy, brown fused alumina enterprise production and operating costs have increased, but bauxite prices in Guizhou area are cheaper than Henan area, so there are more enterprises still in operation in Guizhou Province. However, as the market competition is getting more intense, brown fused alumina prices are in weak and stable operation, and enterprises which keep operating may have reached the edge of the loss line.

This week, due to the continued weak downstream demand, China's black silicon carbide producers have slightly reduced their product quotations for promotion, with the reduction range around RMB 100/ton. It is expected that in the coming week, the price of black silicon carbide may continue to run weakly and steadily.

This week, in view of the stable price of green silicon carbide raw blocks, supported by the cost, China's green silicon carbide prices continue to maintain stable.

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