Market Analysis of Aluminum Oxide in June 2016

From last year to the first half of this year, there are more than 500 ten thousand tons of production capacity shutting down in the aluminum industry, but the rebound in price also brings some recovery production. The prevailing prices of domestic industrial aluminum oxide (grit size: 80-120 mesh; Al2O3≥98.6%) are as follows:

In Henan, industrial alumina is around 2050-2300 yuan/ton; In Shandong, it is around 2100-2200 yuan/ton. The factory price including tax of (325 mesh, Al2O3≥99%, conversion rate≥95%) calcined α-alumina powder in Henan is around 3300-3600 yuan/ton; In Shandong, it is about 3200-3500 yuan/ton.

The reasons mainly include the following two points:

Firstly, the current domestic aluminum enterprises are still difficult to survive. The aluminum enterprises have high requirements for capital in the aspect of recovery production. Usually, the recovery production of a production line needs hundreds of millions or even billions of capital. But now, the aluminum enterprises’ bank financing is quite difficult, so the recovery production process is less than market expectations.

Secondly, the supply reform of aluminum starts earlier, and the redundant construction results in continuing excess capacity. What’s more, it is the demand off-season now, which also makes it hard for prices to rise, and temporary stability.

To sum up, the alumina industry experienced a cold winter in 2015, but in the first half of this year, the alumina market takes a turn for the better as a whole. To view more high quality alumina, please visit the following two companies: YiChuan County ShengYu Fireproof Material Co., Ltd. and Yichuan Dongfeng Abrasives Co.,Ltd.