Price summary for refractory and abrasive materials
In October, the market for bulk refractory raw materials increased, and continued to maintain stability year-on-year;
In October, the bauxite ore is faster than the clinker, and the clinker price tends to be chaotic. Is the supply situation near the heating season better than last year?
The silicon carbide market continues to maintain stability, and price volatility will not be seen this year;
The supply and demand contradiction in the alumina market eased, the price is now falling, and downstream products such as white corundum are subject to observation;
The supply and demand imbalance of brown corundum brown corundum is serious. When can we solve the dilemma?
The price of bulk raw materials has started to rise this month, it is more like a warm-up before the heating season “running”.
Details are as follows:
Yangquan, Shanxi: On October 9th, the price of 80 vertical kilns calcined bauxite in Yangquan area was 1400-1500 CNY/ton, 85 vertical kilns calcined bauxite was 1800-1900 yuan/ton; 85 down-draught kiln calcined bauxite was about 1950 CNY/ton, 88 The down-draught kiln calcined bauxite 2200-2300 CNY/ton (the above prices are excluding tax price), with the adjustment of large enterprises in September, the current bauxite is indeed in a high position again.
At the end of September, the Ministry of Environment and Ecology released this autumn and winter that, in the Beijing-Tianjin-Hebei and surrounding areas, the atmospheric pollution control action plan will remove the unified production limit. The local governments will shorten or extend the peaks according to the forecast results of the monthly ambient air quality during the heating period. This situation also shows that it is very important to control the environment according to local conditions. At present, there are two kinds of voices heard from the production enterprises in Yangquan,Shanxi. One is that the next month will require a unified shutdown, It will stop until March next year, however, the credibility was proven negative, since some plants have not been stopped by the time when contact with reporters. Another voice is that some companies have indicated that this year's peak production is likely, and the probability of a one-size-fits-all situation in Yangquan is small. However, both companies have indicated that the current price of bauxite ore in the Yangquan area has been continuously increasing. What is even more worrying is that the quality of the ore now is declining. The source of ore near Yangquan is produced by local producers. The support is more and more important.
At present, with the arrival of the heating season, we are not aware of the price trend of bauxite, but it is proper to maintain the view of supply last month.
Xiaoyi, Shanxi: In early October, the price of 80% calcined bauxite for majority rotary kilns in Xiaoyi area was 1300-1400 CNY/ton, 85% rotary kiln calcined bauxite was 1800 CNY/ton, and 88% materials was 2080 CNY/ton. (The above price is excluding tax from the factory). Since we also refer to the quotation of qualified enterprises for environmental protection acceptance, the quotation will be smoothed out as more and more enterprises pass the acceptance.
Rectification: At present, with the passage of time, the number of enterprises that pass the acceptance test is increasing. Before the National Day, the reporter learned from the production enterprises that less than six production enterprises have passed the government acceptance and have been in normal production. Interviews with qualified companies, they feedback, the current Xiaoyi municipal government in accordance with very strict environmental standards for acceptance, they also suggest that peer companies must strictly control their environmental protection equipment. On the other hand, when we contacted the production enterprises in Xiaoyi area, we found that some enterprises immediately passed the environmental protection acceptance, then went to the government to receive the notification of resumption of production. At present, as the acceptance progress continues to accelerate before the heating season arrives, production will slowly improve.
In terms of price: due to the large sales of rotary kiln inventory in Xiaoyi area, the current overall market price is still relatively chaotic. With the continuous increase of production enterprises, after the re-calculation of production costs and environmental protection costs, the market price of the same grade products, the interval will continue to shrink. At present, the big challenge of those recovering production enterprises is how to price and how to let downstream customers buy it. We will wait and see who will compromise when the new price is continuously announced.
In October, Silicon carbide plants continued to operate stably. The current market price is relatively steady. 98% silicon carbide fine powder is 7000-7200 CNY/ton, 90% silicon carbide segment sand is 5900-6100 CNY/ton, and 88% silicon carbide segment sand is 5800-5900 CNY/tonne.
A perspective for operation, the enterprises in Gansu and Ningxia that allowed to operate in the early stage, have been in the state of production since then, and enterprises were ordered to rectify are under rectifying, some enterprises are likely to resume production upon acceptance. Although raw materials are in the price increase cycle, due to the limited purchase of silicon carbide by downstream customers, the current overall price is in a stable state.
In response to the trend of the late market price, the reporter also interviewed some companies randomly. As for the current feedbacks, if there will be no sudden centralized production stoppage, the price of the silicon carbide market will be stable and the price increase will not surpass last year. The silicon carbide companies also said that maintaining stability is also what they expect under current market conditions.
At this stage, the tension in the domestic alumina market has eased, and the market supply has gradually become more balanced. Before the National Day holiday, the traders' enthusiasm for replenishment was low, the market trading atmosphere was sluggish, and traders were now getting rid of some goods. The transaction price was as low as 3,200 CNY/ton. At the beginning of this month, Chinalco Group began to adopt the triple-industries average pricing model, and the price was lowered by 100-200 CNY/ton.
In September, domestic alumina producers actively developed alumina export business. Only one alumina plant in Weiqiao, Shandong exported 250,000 tons. Due to the low price, it also hit the overseas alumina market to a certain extent. The Australian alumina FOB price fell to 525 US dollars, and the domestic alumina market price is comparable, the domestic alumina market competitiveness declines, exports are blocked. In addition, on October 3, Hydro announced the comprehensive production reduction of the Brazilian Alunorte alumina plant. On October 5, Hydro announced the release of the Brazilian Alunorte alumina plant to maintain half of the capacity production news. With the news of Hydro's resumption of production, the domestic aluminum oxide market price has also begun to fall.
In terms of raw materials, domestic bauxite producers have not shown signs of production resumption, prices have remained at a high level, market supply is still tight, prices have remained high, and the cost pressure of alumina producers has not diminished.
October is the traditional sales season for alumina, but the fact that the peak season is not prosperous is indeed an indisputable fact. However, with the arrival of the heating season in 2018, alumina producers may have expected to reduce production, and affected by environmental inspections, and the continuous supply of bauxite is tight. This is a big plus for the price of alumina market.
As for the current situation analysis, the domestic alumina market will still be based on small adjustments in the short term.
Brown fused alumina:
In October, the tight supply situation of the brown fused alumina production area in Henan has not been improved but has further intensified.
It is understood that the brown corundum enterprises in Yichuan, Henan area are still in a state of shutdown. Since the 11th of this month, the brown corundum production enterprises in the Sanyuxia Shaanxi County Gangyu Park have been shut down due to the rectification of the park. Initially, there was news that the production was suspended for about 10 days, but until the end of the month, there was no news of resumption of production, and some enterprises said that due to the continuous upgrading of environmental inspections, the suspension of production may continue until the end of the year.
In terms of raw materials, the supply of local bauxite is still tight and the price is high. Factory procurement channels are hard to find. Prices remain high. Therefore, in the production of brown corundum production companies have to raise the ex-factory price to ease the cost pressure, but in view of the lack of downstream demand, the price rise is slow.
In terms of price, the current local price of Al2O3 ≥ 95%, tilting furnace product is mostly at 5300-5500 CNY/ton (including tax ex-factory), and the price of fine powder is 5400-5600 CNY/ton (including tax ex-factory).