China Abrasive Materials Weekly Price (Dec 30-Jan 5 2020): Environmental Inspection Will Continue
At the turn of the old and new in 2019 and 2020, most of the Chinese abrasive companies spent their environmentally-limited shutdowns.
According to the forecast information of the environmental protection department, before March 2020, China ’s air pollution control situation will be still severe. Currently, it is in the middle of the winter season, and smog is prone to occur frequently, and severely polluted weather will still come frequently.
On January 6th, Zhengzhou Eco-Environment Bureau press platform "Green Zhengzhou" published an article "If you slack off for the first two months of 2020, and you will suffer pressure for the whole year", which states: "In the first quarter of 2020, we must learn from the lessons of index rebounds happened from January to February 2019. We must keep an eye on the task, focus on the problem and continue to work hard. "
At present, it seems that the limited production this winter is far from the end.
This week, affected by environmental protection and control, white fused alumina smelting enterprises in Liaocheng area of Shandong Province, Xingyang, Shangjie areas of Henan Province and other areas continued to maintain a large-scale production shutdown, and the output of white fused alumina continued to decline. It is expected that the price of white fused alumina will remain stable in the coming week, supported by the stable price of raw material alumina.
This week, Zhengzhou, Luoyang areas of Henan Province, and other places downgraded the red alert to orange alert for severely polluted weather. A few brown fused alumina producers were able to resume production temporarily, but most of the companies that met environmental protection standards and obtained orange alert exemption status are still being forced discontinued. Many companies indicated that there is no hope that production will resume before the Spring Festival.
Due to meager profits, sluggish market demand and pressure from environmental protection, most brown fused alumina producers will enter the Spring Festival holiday in advance. It is expected that the price of brown fused alumina will remain stable in the coming week.
3. Black Silicon Carbide
This week, affected by the downstream market's wait-and-see attitude, the performance of China's black silicon carbide block market was deserted, and product prices fell.
In addition, due to the increasing inventory pressure of black silicon carbide producers, enterprises are also facing financial pressure. In order to quickly withdraw funds, some manufacturers have chosen to reduce product quotations, which may cause the market transaction price to decline further.
4. Green Silicon Carbide
This week, affected by the weak downstream demand, the market price of green silicon carbide in China continued to be weak and stable. Green silicon carbide raw block production enterprises will be suspended in the near future. Under the pressure of no large inventory, the company has no intention to reduce product prices, and the willingness to reduce prices is weak.