China Abrasive Materials Weekly Price (3-5 May): Spot supply of various abrasives is tightening
This week, due to the tight spot supply in the white fused alumina in the market, most companies tried to increase the price. However, as downstream abrasive companies resolutely opposed it, the price increase faced resistance. It is expected that in the coming week, as most white fused alumina manufacturers have no inventory pressure, the price of white fused alumina may continue to increase.
According to Antaike's data, the average price of China’s alumina spot index was 2366 yuan/ton, and the national average price of alumina was 2769 yuan/ton on May 7th. Alumina price continued to show an upward trend.
After the May 1st holiday, due to factors such as central environmental inspections and restrictions on bauxite mining, the current output of brown fused alumina smelting companies is shrinking, and brown fused alumina companies have also developed a strong wait-and-see sentiment due to the continuous high rise in raw material costs. The spot supply of brown fused alumina continues to tighten.
In addition, although most brown fused alumina production companies have no inventory pressure, it is still difficult to raise product prices. Because downstream abrasive companies are also facing the pressure of rising costs of a variety of raw materials, they are resistant to the price increase.
Based on the above factors, it is expected that in the coming week, despite the current demand for brown fused alumina and the increase in production costs, a new round of price increases is hatching. However, since most downstream abrasive companies’ willingness to oppose price increases are strong, in order to maintain stable sales, brown fused alumina manufacturers may maintain their product prices at a high level.
This week, the market demand for black silicon carbide is still sluggish. Affected by this, the inventories of black silicon carbide are slowly increasing. However, due to strong production costs, companies tend to stabilize prices. It is expected that in the coming week, supported by production costs, the price of black silicon carbide may remain firm.
This week, the market demand for green silicon carbide continued to pick up, and the price of green silicon carbide raw blocks increased by RMB 200/ton. Affected by this, the price of green silicon carbide has been further increased, and the increase rate is about RMB 200/ton. It is expected that in the coming week, most green silicon carbide manufacturers will continue to increase prices due to the increase in raw materials.