In April, the environmental inspection efforts in Yangquan City increased. Due to the significant environmental pollution caused by the production of bauxite in vertical kilns, the government has implemented a ban on the closure of more than 600 vertical kilns in the city to further deepen the environmental protection inspection and effectively ensure the ecological and environmental safety of the city. Today, our website conducted a survey of nearly 15 companies in Yangquan area and found that 5 manufacturers have stopped production, 8 companies will stop production in the next 10 days, and 2 companies will continue to produce environmental protection equipment that meets standards. Among them, 5 companies have stated that they will continue to produce using iron sheet kilns or rotary kilns in the future, and the inventory reserves of 15 companies reach 13700 tons.

At present, some people predict that prices may rise in the market due to the suspension of production of bauxite in Yangquan area, and even some manufacturers have started to stock up a large amount of inventory. Regarding this, our website editor conducted price research on 15 surveyed enterprises. The current mainstream market price for 80% alumina block material in vertical kilns is 800-900 yuan/ton (excluding tax), and the mainstream market price for 70% alumina block material is 300-400 yuan/ton (excluding tax). The prices remain unchanged from the end of last month and have not increased. Some industry insiders say that the price increase is expected to occur in the middle to late part of the year, but the magnitude of the upward adjustment will not be too significant.

The editor believes that the current social demand for bauxite is still lower than the social supply, and steel mills, iron mills, and foundries are all in a weak period. Some small and medium-sized steel mills have repeatedly gone bankrupt, and large and medium-sized steel mills are even more cost inverted. Therefore, raw material enterprises should rationally grasp production volume, actively adjust inventory reserves, and reasonably arrange production pace.