This week, due to market demand constraints, domestic brown corundum manufacturers are "unable to bear loneliness" and the mainstream market quotation has been lowered. Today, the market price of brown corundum Al2O3 ≥ 95% dumping furnace sand in Henan region is mostly between 4000-4300 yuan/ton, with a price reduction of 150-250 yuan/ton; The mainstream price in the fixed furnace market is mostly 3800-4150 yuan/ton, with a price reduction of 150-200 yuan/ton.

The current overcapacity status of brown corundum enterprises is further highlighted. According to the survey, in recent years, some enterprises have upgraded their smelting furnaces, further increased their production capacity, and are currently constructing and building production capacity of about 200000 tons. Although market demand has been slowing down, production has maintained a sustained growth trend, resulting in an imbalance between product supply and demand, severe overcapacity, and increasingly fierce market competition. This week, our website conducted a survey on the actual production scale of 31 brown corundum production enterprises nationwide in the past two years. There were 4 enterprises with actual annual production of over 40000 tons, 4 enterprises with actual annual production of 30000 to 40000 tons, 4 enterprises with actual annual production of 20000 to 30000 tons, and 19 enterprises with actual annual production of 20000 tons or less. The survey results show that there are relatively few large-scale production enterprises, and more than 60% of the actual output of brown corundum is mostly within 20000 tons. In recent years, due to limited domestic demand for brown corundum, many enterprises have gradually reduced their production capacity to reduce financial pressure, resulting in a low capacity release rate. According to statistics, the domestic production of brown corundum in 2014 was around 1.55 million tons, a year-on-year increase of 11.63% and a month on month increase of 3.33% compared to 2013, with a capacity release rate of 35%. The production capacity of brown corundum is severely overcapacity, and the current situation is quite worrying.

At present, brown corundum in China is mainly sold to the refractory and abrasive industries, with refractory sales accounting for about 60-70% according to statistics. At present, the efficiency of steel enterprises is sluggish, and it is difficult to boost terminal demand. With the gradual increase in shipping pressure, the market trading order is chaotic, and quotations are uneven. More and more enterprises are shifting their positions or adjusting their production focus, and are beginning to enter the abrasive and grinding tool industry, injecting fresh blood into brown corundum. Therefore, in the later stage, brown corundum enterprises will seek vitality and diversified development, which will be more obvious.

2015-08-18 Refractory Window