Market Review on China Brown Fused Alumina

- Jul 18, 2019-

Market Review on China Brown Fused Alumina 

In June, market of brown fused alumina in China shows a depressive situation with flat trading as the slack season is arriving in summer. Demands for brown fused alumina abrasive grade and refractory grade material meet decrease currently. 

Since 2017, the raw material for brown fused alumina, bauxite ore supply has been keeping in shortage, affected by the mine ban and environmental regulation. Since the second half of 2018, bauxite has been pushed up to a stable period in high level price, at the same time, ore exploitation restriction has been keeping going forward. On the whole, both price and supply of bauxite have seriously impacted the production and market price of brown fused alumina, which still keeps serious. Production situation is hard to meet significant improvement in this year, considering the current situation, coupled with the coming celebration of 70th anniversary of PRC, the 27th round of RCEP(Regional Comprehensive Economic Partnership) negotiations held between July 22 and 31 in Zhengzhou, and Traditional Sports Meet of Ethnic Minorities held in  September 8th and 16th in Zhengzhou. Henan Province put more effort than ever in the environment inspection and production restriction. 

On the one hand, brown fused alumina production cost has been keeping rising because of the increased investment to environmental protection and decreased supply of bauxite; on the other hand, logistic and purchasing costs increase as the original sourcing channels fail to keep being available. It’s hard to find good quality raw bauxite in Henan province, and local producers have purchased from other province. The situation has no better improvement.