China Abrasive Materials Weekly Price (27 JUL-1 AUG): Cost pressure boosts prices to increase
This week, due to the adjustment of electricity prices in some areas of Henan Province and the continuous increase in the price of raw material alumina, some local white corundum manufacturers plan to further increase the price by about RMB 30 /ton. It is expected that the price of white fused alumina may continue to rise in the coming week.
On July 27, Henan Sanmenxia Vientiane Industrial Co., Ltd. issued a notice of electricity price adjustment. The notice mentioned that due to high coal prices and extremely tight coal purchases, the cost of power generation has risen sharply. Based on the company's research, it has been determined that the corundum park and power companies around the power plant will temporarily increase the current electricity price by RMB 0.04/kWh from 8:00 on July 29, 2021. The increase in electricity prices directly brings about an increase in the production cost of corundum. It is understood that this increase in electricity prices may directly lead to an increase in the smelting cost of white fused alumina by RMB 60-80/ton, and an increase in the cost of brown fused alumina by RMB 120-140/ton. With the increase in electricity prices in Sanmenxia Corundum Park, most local companies indicated that they would raise the price to offset the increase in production costs.
This week, the spot supply of the brown fused alumina in Henan has tightened, and some companies have raised their product prices. However, most downstream abrasive companies hold a wait-and-see attitude and refuse to accept price increases. Therefore, the price of brown fused alumina has remained stable. It is expected that in the coming week, affected by the recent continuous increase in the price of white fused alumina, the price of brown fused alumina may also continue to move upward.
This week, due to the unabated pressure on production costs, most of the black silicon carbide manufacturers aid they would not lower their prices. It is expected that in the coming week, the price of black silicon carbide may remain stable.
This week, due to the high price of raw materials and stabilization, most green silicon carbide manufacturers are willing to maintain the price. It is expected that in the coming week, green silicon carbide prices may stay firm.
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