3 minute read
Raw material price trend
from 101 China Grinding
decline of Shandong alumina price has not led to the change of Shandong white corundum price. Instead, the quotation of Henan white corundum enterprises is pulled down by Shandong low price.
2. Supply: The supply of white corundum continued to decrease this month. In mid-August, with the electricity price of Weiqiao Industrial Park, Zouping, Shangdong increasing, the early part of Shandong white corundum enterprises rely on their own cost advantages to significantly reduce prices, resulting in Shandong white corundum prices continue to fall, now the price has long been hovering near the loss line, and the rise in electricity costs directly led to the cost of white corundum enterprises upside down and then stop production. In the second half of the year, Sanmenxia in Henan Province and Chiping in Shandong Province once again had an epidemic situation. The epidemic situation in Sanmenxia was more serious. The closed-loop production of local white corundum enterprises was restricted. Logistics restrictions led to the failure of raw materials in white corundum enterprises to be replenished in time. Some enterprises stopped production in a hurry, while the epidemic situation in Chiping has little impact on white corundum production and freight transportation. And in addition to the impact of rising electricity prices and the outbreak, this month there are still enterprises due to operational pressure and shutdown, the supply of white corundum in August compared to July significantly lower.
3. Demand aspect: This month, the demand for white corundum did not improve significantly. In August, the steel market price fluctuated higher. The whole month's steel inventory was obviously removed from storage. The production enthusiasm of steel mills has increased. However, at present, the inventory of downstream refractory enterprises is also relatively sufficient, and the demand for white corundum has not increased significantly. Later real estate "golden nine silver ten" is coming, steel mills start or will continue to recover, with refractory enterprises to the warehouse, white corundum demand or will improve, at present, the recovery of white corundum demand still needs a certain amount of time, short-term or ineffective.
4. Cost Aspects: The cost of white corundum was mixed this month. In terms of alumina, the price of alumina in Shandong stopped steady in August. The settlement price of alumina in Shandong in August was 2971 CNY/ton, down 29 CNY/ton from last month. The price of aluminum oxide in Henan fell first and then rose in August. The calculated price in August was 3022 CNY/ton, up 1 CNY/ton from July. In August, the mainstream transaction price of 350mm high power of stone ink electrode continued to decline, down 3000 CNY/ton from the beginning of the month, driving the cost of white corundum downward. In terms of electricity price, the electricity price of white corundum enterprises in Weiqiao Industrial Park, Zouping in Shandong Province rose by 0.05 CNY/degree. On the whole, Shandong Zouping white corundum enterprise costs rose, other white corundum enterprise costs fell.
5. Profit: The cost of white corundum was mixed this month, with Shandong Zouping white corundum enterprises rising, while other white corundum enterprises falling. In terms of price, the profits of Shandong white corundum enterprises are weak, so the loosening of alumina prices did not cause the price of white corundum to fall, while the early price of Henan white corundum enterprises is higher than that of Shandong, and the customer's purchasing intention has a tendency to transfer to Shandong. Under this pressure, the quotations of Henan white corundum enterprises have fallen one after another. On the whole, except for Zouping, the cost of enterprises in Shandong has decreased, the price has remained stable, and the profit has recovered; while the cost of enterprises in Henan has decreased slightly, but the price has fallen even more and the profit has declined.
6. Inventory: This month, white corundum inventory continued to decline, Henan Sanmenxia epidemic, white corundum enterprises more closed-loop production, delivery slightly stagnant, inventory slightly increased, while in August white corundum operating rate continued to decline, discontinued enterprises to maintain long single supply with inventory, and in-production enterprises are also actively going to the warehouse, white corundum market inventory as a whole is still a downward trend.
7. Future Forecast: At present, the market price of white corundum is near the loss line, and the impact of the decline in alumina prices on the price of white corundum is not obvious. It is expected that the white corundum market will remain stable in the later period, with a price adjustment of about 10 CNY/ton. At present, the price of white corundum is near the loss line, and it is expected that the price of white corundum will remain stable for a period of time. Demand-side steel mills continue to improve, refractory demand has rebounded, with refractory enterprises continue to go to the warehouse, the late demand for white corundum or will increase, but still need a certain period of time, a short period of time or poor results.
1.Market overview:
