China Abrasive Materials Weekly Price (30 MAY-5 JUN): Abrasive price slightly decreased
This week, by the downstream abrasive industry demand sluggish and other factors, China's white fused alumina market continued to run under pressure, most enterprises reduced prices slightly to promote with the price reduction range of about RMB 50/ton. It is expected that in the coming week, due to the price trend of raw material alumina is still stable, white fused alumina prices will be in stable operation.
Considering the sluggish downstream demand, most of the brown fused alumina producers in China lowered the price by about RMB 50/ton. In view of the increasing inventory pressure, coupled with the firm production costs, nearly half of the brown fused alumina producers chose to reduce production in the past two weeks. It is expected that in the coming week, supported by the strong production costs, the price of brown fused alumina will remain stable.
After more than a month of decline, the price of black silicon carbide has basically leveled off. In the short term, the price of black silicon carbide will run smoothly. There are two reasons that can cause the next change in the black silicon carbide market: one is the battle between the rising cost pressure and supply and demand, and the other one is environmental protection policy of the Gansu Province in the next stage. At present, without considering the freight factor, the price of black silicon carbide has basically hit the bottom.
Since this year, affected by the rising prices of raw materials such as petroleum coke and electricity, the price of green silicon carbide raw block in China has risen from about RMB 10,800 /ton in January to more than RMB 15,800 /ton at present, an increase of nearly 50%. In addition, due to the international situation and other factors, petroleum coke and other raw material prices still have a relatively large increase to expect, therefore, the production costs of green silicon carbide rose sharply, in order to alleviate the rising cost pressure, most green silicon carbide enterprises have again raised the product offer, the price has exceeded RMB 20,000/ton.
Pulled by the growth of production costs and supply reduction in raw blocks, most producers intend to continue to raise prices, and is expected in the coming week, green silicon carbide prices will continue to move higher.