The Tough Situation Of Brown Fused Corundum Production in China
Brown Fused Corundum Price rises with 5-month China bauxite plant and fused corundum shutdown to March 2018 in the anti-pollution measure.
Earlier this year, the central government took steps to start a clampdown on unregistered and illegal businesses throughout China. State Council Order 684 against “undocumented and unlicensed operating procedures”, signed by Prime Minister Li Keqiang, is essentially a policy to criminalize all business operations without business (and other) license. Many small Brown Fused Corundum plants were forced to shut down. Chinese mineral supply is the much influenced by Chinese internal politics, to be played out at the imminent 19th National Congress of the Communist Party of China commencing 18 October in the Great Hall of the People.
Therefore, according to the central government request, during peak hours, brown fused corundum industrial production is to be reduced, or stopped entirely, and can also be “urgently suspended when necessary”. In order to escape the shutdown, some brown fused corundum producers are looking to switch their calcined fuel supply to natural gas, which increases the cost of brown fused corundum. The measure is in response to anticipated increased pollution levels caused by the province-wide initiation of coal-fired heating systems during the winter season.
Brown fused corundum price increases have not only been prompted by brown fused corundum demand pressures, but also from the parallel rises in costs for coal, natural gas, truck freight, and now additional charges for environmental equipment installation.