Market review of China bauxite refractory raw materials in Jan. 2019
In the first month of 2019, calcined bauxite refractory materi market shows no significant changes with continuous production stoppage and extreme supply shortage. Bauxite market offers appear to be more chaotic under current conditions.
In xiaoyi, ex-work prices of calcined bauxite refractory material for 88% Al2O3 range from RMB 2100/t to RMB 2400/t, even higher by some suppliers. Other grades of calciend bauxite also show the same situation in price.
As for the existence of round kilns bauxite refractory material in Xiaoyi, things seem to be proved to turn better. Local government has agreed to maintain round kilns that are higher than 3 meters in size, after rounds of discussions with specialists and participants from local companies or industrial organizations. Government also promise to pay subsidy to destroyed kilns forced by environmental protection situation. Those who maintain larger round kilns are said to conduct facility upgrades under the supervision of authorities to reduce emission to the lowest level before they restart kilns. This seems to be the only good news about calcined bauxite even for the entire refractory industry in this winter.
In Yangquan, another production region of calciend bauxite in Shanxi province. calcined bauxite market prices keep relatively stable at high level compared with the previous month.
According to local participants, both local calcination players and process players are facing great uncertainties in 2019 mainly from ore bauxite supply. Suppliers that could keep long-term and smooth supply of ore become less and less with stoppage and mine ban keeping going forward.
The similar situation appears in Yangquan that shaft kiln calcined bauxite is facing chaotic market price, with more serious trouble of production stoppage.
Decreasing overall supply capacity of ore bauxite is one of the most directly result by environmental protection and quality and purity reduction of ore bauxite is another one.
Hennan is the province that is extremely impacted and hit by environmental protection action in China, especially when it comes to refractories industry. According to local participants, total operation time since Feb, 2018 is only about 1 month, with about 10 months in production stoppage or constriction. Although this happens to minority situations, it shows how serious the situation went in 2018.
Currently, with the exhausting stockpile of calcined bauxite which has lower calcination costs because of usage of coal as energy, there will be no such calcined bauxite supply in 2019 in Henan province.