The bulk raw material market ended with a rise in June, with prices of magnesite skyrocketing and magnesia prices reaching new heights; Due to environmental inspections, the price of bauxite with various tastes has been frequently raised due to a shortage of supply sources; The price of industrial alumina has once again risen, creating a seller's market for alumina raw materials, and the market supply is quite tight. The specific situation is as follows:

Bauxite: In June, the price of 80 iron sheet vertical kiln in Yangquan area was between 1150-1250 yuan/ton, an increase of 100 yuan/ton compared to the previous month. The price of 85 iron sheet vertical kiln bauxite was between 1450-1500 yuan/ton, an increase of 100 yuan/ton compared to the previous month. The price of 85 reverse flame kiln bauxite was between 1600-1700 yuan/ton, an increase of 150 yuan/ton. The price of 88 reverse flame kiln bauxite was between 1900-2000 yuan/ton, an increase of 150-200 yuan/ton compared to the same period last month (the above prices are all block material factory prices excluding tax)

At present, the reverse flame kiln alumina in Yangquan area is very scarce, and the mainstream market quotation has little significance. Please negotiate and communicate with the production enterprise in a timely manner. Several production enterprises in Yangquan area have expressed that their current operating situation is not optimistic. The current market price of bauxite is much higher than before the entry of environmental protection. This is mainly due to the high price of raw ore caused by the shortage of raw ore, coupled with environmental protection urging entry, which has catalyzed the continuous increase of bauxite market prices.

The mainstream quotations in Guizhou region are: the price of 85 pieces of rotary kiln material is 1550-1650 yuan/ton, the price of 80 pieces of material is 1250-1350 yuan/ton, and the price of 88 pieces of rotary kiln alum block material in Guizhou region is 1750-1850 yuan/ton. The prices have all increased but the increase has slowed down (the above quotations are ex factory prices without tax). There has been progress in the construction of bauxite in Guizhou, but the progress has been very slow.

This month, there is no trend of further increase in the price of homogenized bauxite, and some enterprises in Shanxi's main production areas have slightly reduced their prices. With the gradual start of production by Shanxi bauxite enterprises, the previously inflated prices of some enterprises have been squeezed, and the market atmosphere of price gouging due to environmental protection has converged. Due to the small market demand, the supply-demand contradiction of homogenized alumina is not as significant as that of ordinary alumina. Therefore, the pricing of homogenized alumina is mainly based on the supply and demand situation. However, due to the high raw material prices, production enterprises are under great pressure. Currently, the inventory of bauxite in normal production enterprises is still relatively sufficient. As the regular raw material inventory of production enterprises is exhausted in the later stage, homogenized alumina production enterprises will inevitably recalculate costs, and the price of homogenized alumina may be adjusted again in the later stage.

Silicon carbide: In June, the mainstream quotation for 98 black silicon carbide 200 mesh fine powder in Ningxia and Gansu regions was 6200-6300 yuan/ton; The mainstream quotation for 97 black silicon carbide 200 mesh fine powder is 6000-6200 yuan/ton; The mainstream quotation for 90 black silicon carbide 200 mesh fine powder is 4000-4200 yuan/ton. So far, the sales department has not received any notice of price increase, so the price has not been adjusted yet.

Through investigation, it has been found that currently there are not many manufacturers selling block materials separately, and most of them are sold as processed sand and fine powder. At present, the manufacturer has very little inventory and is strict with new orders, mainly focusing on meeting the supply needs of existing customers.

At present, according to production enterprises in Ningxia, the environmental inspection team will hold a "look back" activity in mid month, which will affect production, especially the spot resources of raw materials such as quartz sand and anthracite, and the production of silicon carbide will be constrained. Recently, the price of smokeless coal has been raised again, and the cost of silicon carbide production enterprises has increased. Based on the above analysis, it can be concluded that silicon carbide will continue to rise in the second half of 2017

Flake graphite: In the past month, both suppliers and buyers of flake graphite have mentioned the issue of price increases, but the market is quite chaotic due to factors such as already rising, waiting to rise, and varying price increases (minimum increase of 50 yuan/ton, maximum increase of 1000 yuan/ton, and general increase of 200-400 yuan/ton).

Compare the quotation of 195 flake graphite between Shandong and Northeast regions. Northeast region -195 flake graphite manufacturers offer a minimum price of 2800 yuan/ton and a maximum price of 3000 yuan/ton; The lowest quotation for 195 flake graphite manufacturers in Shandong region is 3400 yuan/ton, while the highest reaches 4000 yuan/ton. Although the lowest priced manufacturer in Northeast China has stated that prices will definitely increase by 500 yuan/ton by the end of June. But even if the manufacturer raises the price by 500 yuan/ton to 3300 yuan/ton, there is still a considerable gap between the quoted prices of enterprises in Shandong region, and market chaos will continue.

As for why the price of flake graphite has increased, there are different opinions on the reasons.

Firstly, there are environmental factors. Environmental protection measures have been strengthened, graphite mining is restricted, and raw ore prices are also increasing. According to a graphite manufacturer in Shandong, the price of ore increased by 150 yuan/ton on June 15th. At the same time, due to the need for acid washing of high carbon graphite, production is not allowed due to poor environmental protection, and resources are constantly decreasing, resulting in a severe shortage of high carbon graphite, with 99% content and 50 mesh flake graphite in short supply. Furthermore, the drought in Shandong region has led to a shortage of industrial water, difficulties in mineral processing, and an increase in the number of suspended enterprises. All graphite manufacturers in Northeast China have not yet started production. Finally, there are rumors that Shandong's environmental protection will be strictly inspected in July, causing some graphite manufacturers to start stockpiling.

At present, there has been a price increase of 500-1000 yuan/ton for 599 flake graphite in Shandong region. The manufacturer's quotation is currently around 10000 yuan/ton, and the manufacturer has stated that it will rise to 12000 yuan/ton in the future.

Industrial alumina: The mainstream quotation for industrial alumina in the Shandong market in June was 2800-2840 yuan/ton, with a price increase of 40-50 yuan/ton compared to the beginning of this month.

It was learned from a large alumina production enterprise in Shandong that the company produces 5400 tons of industrial alumina per day, of which 5100 tons are supplied to electrolytic aluminum enterprises, leaving only 300 tons available for refractory materials and other industries. Although the price of industrial alumina keeps rising, it is still in a seller's market with tight spot supply.

Due to the high operational capacity of electrolytic aluminum and the high demand for industrial alumina, it plays a supporting role in the market price of industrial alumina. As industrial alumina production enterprises in Shanxi region are affected by environmental protection and their output is reduced, downstream customers in Shanxi region are currently transferring goods to Shandong. Comprehensive analysis shows that the price of industrial alumina will continue to operate at a high level in the short term.

Brown corundum: In June, the market price of Al2O3 ≥ 95% dumping furnace sand in Henan region was mostly between 4000-4200 yuan/ton (factory tax included). The price has been increased by 200 yuan/ton compared to the previous price.

The price increase of brown corundum this time is mainly due to the influence of raw materials. After investigation, it was found that the mining of bauxite in Henan Province is limited by environmental protection, and the supply of bauxite has decreased and the price has increased. The price of graphite electrodes has also been rising, leading to an increase in the production cost of brown corundum.

Due to the shortage of raw materials and high costs, some brown corundum enterprises have taken measures to shut down and reduce production. The enterprises have stated that they can resume production once the raw materials are stable. At present, the brown corundum is in good condition and the manufacturer has basically no inventory. Based on comprehensive analysis, it is difficult to alleviate the shortage and cost increase of brown corundum raw materials in the short term, and prices will continue to operate at a high level in the later stage.

White corundum: In June, the mainstream price of Al2O3 ≥ 99% sand in Henan region was 4800-4900 yuan/ton, and the mainstream price of fine powder was 4900-5000 yuan/ton (factory price including tax), with a price increase of 100 yuan/ton compared to the previous month.

The price increase of white corundum this time is mainly affected by the increase in costs. It is understood that the mainstream price of industrial alumina in the Shandong market in mid month is 2800-2840 yuan/ton, and the price has increased by 40-50 yuan/ton compared to the beginning of this month.

Due to increased costs, most white corundum enterprises produce based on orders and have limited inventory. According to our analysis, after a period of explosive growth, the price of raw material industrial alumina will not experience significant adjustments in the short term, and based on this, the market price of white corundum will remain stable in the later stage.

Source: Window of Refractory Materials