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  • Writer's pictureJCT Abrasives

China Abrasive Materials Weekly Price (7-13 Dec): Scope of production suspension expands

At present, Henan and Shandong provinces continue to tighten environmental protection control. Most enterprises in Henan are expected to resume production in early January. With limited inventory and the rising price of raw material alumina, various manufacturers have put price adjustments on the agenda. If the price of raw materials continues to be high in the later period, and environmental protection enforcement maintains strict, the price of white fused alumina is expected to rise at the end of the year.

According to Antaike’s alumina price index on December 11, China’s alumina spot index was RMB 2,295/ton, and the price rose slightly; the national average alumina price was RMB 2,528/ton, which was stable compared to last week. Recently, due to the impact of environmental protection, heavy pollution weather warnings in Henan and Shanxi are frequent. According to emergency emission reduction requirements, some alumina plants have begun to adjust production and operation. Alumina plants in Zibo and Binzhou of Shandong Province have also followed up with production reductions. With the impact of enterprises overhaul in Jinzhong regions of Shanxi Province, the price of alumina in northern China began to rise slightly.

Since December, due to the impact of environmental protection control, the production of brown fused alumina in Henan Province has continued to be halted. More and more buyers are turning to Guizhou for inquiries. The quotation of brown fused alumina in Guizhou has also been adjusted upwards, mostly about RMB 100-200/ton. However, due to the suppression of the price of white fused alumina, industry insiders generally believe that although the current brown fused alumina price will increase, the increase will not be much, and the subsequent continuous increase is difficult to sustain.

Recently, the implementation of environmental protection in Gansu Province has been intensified, and some companies have suspended production and most companies are requested to continue to increase investment in environmental protection. Coupled with the continued high a price of raw materials such as anthracite, the cost of black silicon carbide has continued to increase. It is expected that in the coming week, the price of black silicon carbide in China is likely to rise and maintain this high level in the short term.

This week, in view of the continued high prices of raw materials such as petcoke and anthracite, and the difficulty in rising prices of green silicon carbide, some companies in Ningxia have already suspended production since mid-November. It is expected that in the coming week, the price of green silicon carbide in China may remain stable.

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