In the second half of Apr, World second largest aluminum company, which owned mainly by the central government of China, announced a significant price rise for ex-factory aluminum oxide powder and Aluminum Hydroxide selling to third-party non-metallurgy clients.
Aluminum oxide and Hydroxide are widely used in electrolytic aluminum industry, pharmaceutical industry, chemical industry and abrasive industry. Based on the formal document, CHINALCO will leave
electrolytic aluminum industry unaffected, Pharmaceutical, Chemical and Abrasive will be attached a extra cost relatively 20-35% higher.
Along with the RMB appreciation, raw material price will be another headache for the abrasive plants. White corundum is made from alumina powder, the cost of the raw material will not be conducted to clients completely, It will trail off the margin or simply lead to non-profit.