Industrial Aluminum Oxide Abrasive Price is Expected to Rise

During the first ten-day period of October, the mainstream quoted price of aluminum oxide abrasive in Henan Province was around 3,000 Yuan to 3,100 Yuan per ton, which increased 300 Yuan per ton compared with the price of last month.

The continual appreciation of industrial aluminum oxide is pushed by several reasons, such as industrial accidents, which led to production halts for aluminum oxide. At the same time, factory maintenance also has an influence on the production. As a result, the supply for aluminum oxide is insufficient. On the other hand, the new electrolytic aluminum's new capacity in northwest China stock has lead to the increasing imbalance between supply and demand, which is conductive to the situation that aluminum oxide price be separated from the aluminum price. Since Indonesia has banned bauxite ore from export, aluminum oxide factories that use import bauxite in Shandong Province have increased their purchase of bauxite, which facilitated the producing cost and in turn kept the aluminum oxide price at a high point.

Influenced by the surge in aluminum oxide price, some aluminum oxide companies with idle capacity have planned for resuming production, which is expected to be conducted at Nov. to Dec. 2014.

Author: Liwei Chu
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