An Analysis on China's Corundum Abrasive Market Situation in August

White Corundum Market Kept Stable

In August 2014, the white aluminum oxide abrasive market in Shandong Province remianed stable. The mainstream price of white aluminum oxide section sand,  including tax, was 5,000 Yuan to 5,300 Yuan per ton; the mainstream price of fine powder,  including tax,  was 5,100 Yuan to 5,400 Yuan per ton.

Currently, although the white aluminum oxide abrasive price in Shandong province is temporarily stable, the actual price fluctuates around 100 Yuan to 200 Yuan. Some aluminum oxide abrasive manufacturers have revealed that the price percentage retracement has a lot to do with customers' payment terms and remittance time. Downstream customers' payment issues have a vital influence on companies' production and management.

In Henan province, the white aluminum oxide abrasive market is temporarily stable, The mainstream price of white aluminum oxide section sand,  including tax, was 5,000 Yuan to 5,200 Yuan per ton; the mainstream price of fine powder,  including tax,  was 4,800 Yuan to 4,900 Yuan per ton.

Recently the industrial aluminum oxide abrasive market price in Henan Province has appreciated,  with the mainstream price, including tax, being 2,500 Yuan to 2,600 Yuan per ton, which increased 50 Yuan per ton compared to that of last month. However, the slight adjustment in the industrial aluminum oxide market price has little effect on the white aluminum oxide price. Most aluminum oxide manufacturers hold that it remains to be seen. Some companies say that if aluminum oxide's price further appreciates, they may consider rasing the price of white aluminum oxide properly.

Demand for Sintered Corundum Decreased

In August, more than 99% of the sintered corundum section sand price including tax was 5,000 Yuan to 5,200 Yuan per ton; the fine powder mainstream price, including tax, was 5,200 Yuan to 5,400 Yuan per ton. The overall market price was stable.

Currently the sintered aluminum oxide abrasive market is stable and is barely affected by the raw material--imported aluminum oxide. During the month, the Australia-made aluminum oxide market has remained stable, the domestic mainstream price, including tax, is about 2,500 Yuan to 2,600 Yuan per ton.

There is only a slight demand for sintered aluminum oxide domestically and the decline is obvious. Compared to the same period last year, sintered aluminum oxide market sales volume has declined evidently due to the indirect influence of the sluggish domestic steel industry. A majority of sintered aluminum oxide abrasive manufacturers are being positive, and seeking to develop new products and try new fields. It is predicted that the sintered aluminum oxide market price will not be stable in the near future.

Brown Corundum Market Stayed Weak

In August, the brown fused alumina abrasive market in Guizhou Province stayed weak and stable. The mainstream price of dumping furnace brown fused aluminum, including tax, was around 4,000 Yuan to 4,300 Yuan per ton. Meanwhile, most companies prefer to process and sell lump materials rather than produce them.

At present, brown fused alumina abrasive production in Guizhou Province is faced with difficulties. On the one hand, some companies have stopped production. On the other hand, some companies are busy with rebuilding the kilns, and they only provide goods for regular customers.

The brown fused alumina and sub-white fused alumina market in Henan Province is remaining stable. The mainstream price of dumping furnace brown fused aluminum section sand, including tax, was around 4,250 Yuan to 4,450 Yuan per ton; the mainstream price of stationary furnace section sand, including tax, was 4,100 Yuan to 4,300 Yuan per ton.

There is a slump in the brown fused alumina abrasive market in Henan Province. Some companies hold a negative view towards the market. Individual companies have made a concession by price decline of nearly 500 Yuan per ton. There are also SMEs that have stopped production due to the poor market situation and heavy pressure. After all, Henan brown fused alumina abrasive market is sluggish.