China's Aluminum Oxide Market Price Hits 2,700 Yuan Per Ton

The sluggish market trends in the metal industry have contributed to the persistent increase in China's aluminum oxide abrasive price. Platts evaluates that the aluminum oxide abrasive price in Henan Province has risen by 60Yuan per ton to 2,700 Yuan per ton (equivalent to about 439 dollars per ton). The terms of payment were 70% by cash and 30% by credit card. The insufficient spot stock and the expected new source of goods in the fourth quarter of 2014 have also served as the contributing factors for the present price appreciation in aluminum oxide abrasive.

This week the aluminum oxide abrasive price has increased by 100 Yuan per ton, compared with last month when the price rose by 230 Yuan per ton. iAbrasive has learned that the quoted price of aluminum oxide in Henan Province is currently around 2,700 Yuan to 2,730 Yuan per ton. Some deals are concluded by D/C, and the buyers' desirable price is 2,650 Yuan to 2,680 Yuan per ton. The Shanghai Futures Exchange revealed that on Monday the aluminum oxide at contract rate was 14,385 Yuan per ton, which is a down-regulation when compared with the price on the previous Monday, which was 14,875 Yuan per ton.

An aluminum oxide manufacturer in Henan revealed that the suppliers are not eager to sell the stock; instead they have chosen to wait and see whether the price will continue to stay firm in the future. Currently, he will make plans for the replenishment quantity and wait to see the price change in metal.

Reliable information indicates that with the coming holiday of the National Day, the aluminum oxide spot stock purchasing will start within this week. "Aluminum oxide price fluctuated around the Mid-Autumn Festival (from Sept. 6 to Sept. 8), which makes some people concerned whether the same situation will occur during the National Day. So some purchasers will buy goods in advance," said a welding manufacturer from South China.

A manufacturer in Shandong Province said, "Because almost every insider in the abrasives industry is keeping an eye on the metal price, aluminum oxide refining companies are also looking forward to a higher price. However, if the metal price continues to decline, the price of aluminum oxide abrasive will decline accordingly. That's what the purchasers are looking forward to."

Meanwhile, the aluminum oxide spot goods price in Shanxi Province was around 2,680 Yuan to 2,780 Yuan per ton on Monday. iAbrasive has learned that the aluminum oxide quoted price in Guangxi Zhuang Autonomous Region remained stable; the transaction price was 2,480 Yuan to 2,500 Yuan per ton.

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