Brown Fused Alumina Market Prospect 2015

Refractory market in 2014 has been experiencing depression resulting from excess production capacity in the steel industry, dull sale, and inexpensive price. Over 80% of the brown fused alumina have been applied in refractory material production, which poses a serious challenge to brown fused alumina, whose market demand has witnessed a substantial decline. Although the Chinese government has taken corresponding measures, such as export rebates, the effect was not favorable. While the abrasives industry has a small proportion of demand for refractory materials, its driving force for brown fused alumina is slight.

Currently, there are many problems in the brown fused alumina market. The highway traffic limitation has resulted in increased transportation costs. At present, the non-ferrous metals industry is not promising, the exploitation quantity of bauxite ore is small. The raw materials are insufficient, and the price has increased. The companies are heavily burdened. It is predicted that brown fused alumina market will continue shrinking till the end of 2014. For the moment, the utilization of capacity is less than 70%, which is predicted to gradually decline till the end of the year.

Whether the brown fused alumina market can experience economic recovery remains to be seen. Seen from the current market situation of brown fused alumina, the situation maybe more serious in 2015. 99% of the brown fused alumina factories are run by individuals or private enterprises that are not capable of conducting technological innovation, so they can simply stay at low-level redundant development. Generally speaking, the brown fused alumina industry needs to be regulated. For many years, the brown fused alumina has been influenced by price wars. Seen in the long run, if the situation is not prevented, China is likely to import brown fused alumina from foreign countries. Therefore, effective measures shall be taken to stop price wars and facilitate industry upgrading.

Author: Liwei Chu
Copyright: iAbrasive.com--Abrasives & Diamond Tools Market