In April, the markets for bauxite, brown corundum, silicon carbide, fused magnesia, sintered magnesia, flake graphite, and white corundum remained weak and stable. Alumina has a downward trend. On April 16, 2015, China Refractory Window Network released the Refractory Raw Material Price Index (RMPI) at 127.05 points, a decrease of 0.77% month on month and 4.20% year-on-year.

Bauxite: In early April, the price of bauxite in Xiaoyi area remained stable. The mainstream price of 85 alumina blocks in rotary kiln is between 1450-1650 yuan/ton, and the mainstream price of 88 blocks in rotary kiln is between 1650-1950 yuan/ton; 85 pieces of material in shuttle kiln cost 1450-1650 yuan/ton. The price of bauxite in Yangquan area remains stable, with a quoted price of 1750-2000 yuan/ton excluding tax for 88 pieces of bauxite in a reverse flame kiln, 1250-1500 yuan/ton excluding tax for 85 pieces of bauxite in a vertical kiln, and 500-600 yuan/ton excluding tax for 75 pieces of bauxite in a vertical kiln. (The above prices are factory quotes excluding tax)

The environmental inspection efforts in Yangquan City have 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 order 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, market insiders predict that prices may rise due to the shutdown of bauxite production in Yangquan area, and some manufacturers may even start stocking 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.

Brown corundum: In April, the overall market for brown corundum in various parts of China remained weak and stable. The mainstream market price for 95+dump furnace sand in Henan region is 4250-4450 yuan/ton, while the mainstream market price for fixed furnace sand is mostly 4000-4250 yuan/ton; The price of alumina sand with Al2O3 content ≥ 97% is 4900-5100 yuan/ton. (The above prices are all cash ex factory prices including tax)

Up to now, there has been no significant improvement in the production capacity of brown corundum in China. The refractory material market has been in a weak state due to the influence of the steel industry, which has also affected the demand for most refractory raw materials to a certain extent, including brown corundum. Another main reason for the downturn in the brown corundum industry is the difficulty in receiving payments, and most companies dare not accept new orders at will. Due to its high power consumption, the production of brown corundum is known as the "electric tiger". With the recent electricity price adjustment policy issued by the State Council, it undoubtedly provides favorable factors for manufacturers and will reduce their burden.

The spot market for brown corundum in Henan region is mainly dominated by section sand and fine powder, while in Guizhou region it is mainly dominated by high-grade sand. Some small manufacturers have deepened the reform of their business management system in order to seek long-term development. They have gradually reduced the processing ratio of segmented sand and fine powder, increased the proportion of fine-grained sand, and supplied abrasive materials to production enterprises for grinding wheels.

Aluminum oxide: The market price of industrial aluminum oxide in Shandong region has risen significantly, and the current market price of industrial aluminum oxide is mostly maintained at around 2700 yuan/ton, with stable and fluctuating quotes compared to last month.

After the Spring Festival, the inventory of alumina plants increased, and the inventory of electrolytic aluminum enterprises decreased, which prompted some domestic alumina enterprises to lower their prices and ship.

The latest data released by the National Bureau of Statistics on April 15th showed that the production of alumina in March was 4.8 million tons, a year-on-year increase of 15.4%. The production of alumina from January to March was 13.97 million tons, a year-on-year increase of 15.3%. Analysts say that this year will be the peak period for the production of new alumina capacity, with a planned production capacity of 5 million tons, an increase of 47% from last year's 3.4 million tons.

White corundum: In April, the white corundum market remained stable. According to the Refractory Window, the price of Al2O3 ≥ 99% white corundum segment sand in Henan region was 4900-5100 yuan/ton, and the price of fine powder was 5100-5300 yuan/ton; The price of sand in Shandong region is between 5000-5200 yuan/ton, and the price of fine powder is between 5100-5300 yuan/ton (all prices are factory inclusive of tax), which is basically the same as last month.

In terms of raw materials, industrial alumina has gradually stabilized in early April after a slight price drop in the past period. The stability of raw material prices is still somewhat reassuring for white alumina manufacturers. However, the downstream cargo flow is still not particularly optimistic. According to a manufacturer in Shandong, the demand for white corundum will not be strong after the new year, and there have been few orders recently, which is slightly lower than the same period last year. There are two reasons to pursue it:

One reason is that the current profitability of steel and refractory product enterprises is poor, with reduced production capacity, which directly leads to a decrease in the demand for white corundum procurement.

The second reason is that downstream customers will adjust their procurement time appropriately during holidays. Most manufacturers have already completed procurement and stocking before the holiday, and currently have spot inventory, so the current demand has not been released normally.

In summary, the editor's analysis suggests that with the consumption of inventory by product companies, downstream demand for white corundum will also improve accordingly, and it will continue to operate steadily in the short term.

Transferred from China Refractory Window Network