China's Export of Brown Fused Alumina Full of Uncertainty in 2017

Throughout 2016, brown fused alumina enterprises made prices adjustment for many times. Influenced by environmental protection and raw materials, they are in supply side structural reform tide, but still difficult to reverse in the short term. Recently, some large refractory enterprises begin to deal with the capacity. It is only a self adjustment of the market under the supply and demand.

At present, most of enterprises produce according to sales, which makes the market supply a bit nervous. There is a cash-strapped problem that most of brown fused alumina enterprises are facing. Once the prices fall again, some small businesses might discontinue again. At the same time, influenced by environmental protection, most of brown fused alumina production enterprises had been in halt production and destocking situation in Henan since July 16, 2016.

In the face of tough market conditions, some brown fused alumina export enterprises in China have to raise export prices, but the majority of foreign customers are unwilling to accept new prices, constantly looking for new suppliers and holding down the prices. Some export enterprises have to compromise again and again in order to maintain old customers, which leads directly to reduced export volume of brown fused alumina, and the export prices are also falling sharply.

However, it is expected that China's refractory industry will have to face complicated external situation in 2017, and there are also more uncertain factors in the process of industry development. The gradually increasing environmental pressure, the rapidly rising cost of production factors and more and more complex pattern of international trade, all will pose a certain pressure to China's refractory export in 2017.

For a kind of essential refractory raw material, brown fused alumina export enterprises should probably spend more effort on products and services to win more foreign customers for long-term and stable cooperation, rather than simply gain immediate, or short-term orders through price war.