China Abrasive Materials Weekly Price (2nd -8th September): Abrasive Grains Supply Declines
This week, the National Minority Games was officially opened in Zhengzhou, and the white fused alumina production enterprises in the surrounding areas of Zhengzhou Province, such as Xiangyang and Shangjie, were suspended from production until mid-October. In addition, the power supply station of Chiping Industrial Park in Shandong Province began to reduce the power supply load in early September, and some local white fused alumina smelting enterprises were forced to cut production. Therefore, despite the sluggish market demand, supported by a sharp decline in supply, it is expected that the market price of white fused alumina will remain stable in the coming week.
Affected by the slowdown in macroeconomic growth and the economic downturn in industries such as steel, machine tools, automobiles, and ships, demand of abrasives products, including grinding wheels, cutting blades, and coated abrasives has shrunk, leading to the decreasing demand for brown fused alumina in the downstream. Some industry insiders estimate that the demand for brown fused alumina abrasives in the bonded abrasives and coated abrasives industry will be reduced by nearly 50% compared to 2018. In addition, affected by the escalation of trade friction between China and the United States, the market pessimism is heavier. It is expected that the demand in the downstream market of brown fused alumina abrasives will not be greatly improved in the short term.
3. Black Silicon Carbide
Affected by the large-scale shutdown of black silicon carbide production enterprises in Gansu in July and August, the current black silicon carbide market inventory is still low, and supply is still slightly tight, so the price is temporarily stable.
4. Green Silicon Carbide
This week, domestic green silicon carbide original block, granular sand, micro-powder and other market supply and demand are relatively stable.
In addition, the demand for fine powder products such as JIS2000 for semiconductor processing in exporting countries such as Japan and Korea is strong. After the substantial price increase of green silicon carbide in June and July, the current market price has stabilized at a high level. It is expected that the market price of green silicon carbide products will also operate stably in the coming week.