Chinese brown fused alumina spot prices hit a 1.5-year high over the past two weeks as widespread environmental inspections continue to push prices upwards.
Environmental inspectors have moved into Henan province – the main fused alumina producing region in China – since mid-July, and many facilities were compelled to close while the inspections took place.
Randomised anti-pollution checks have been conducted at plants in various parts of the province, which reduced total fused alumina output in the region, at least three local producers told IM.
China is one of the largest fused alumina producers globally and the output cut will impact exports to international
refractories and abrasive end markets.
Due to the ongoing production outage, brown fused alumina (BFA) prices have rocketed over the past fortnight, continuing the uptrend that was first identified on 13 July.