Market Analysis of Aluminum Oxide in September 2016

In September, the rising prices of industrial aluminum oxide brought a chance for the refractory market, which becomes the focus of attention of upstream and downstream enterprises. It is understood that the price of industrial aluminum oxide in Henan and Shanxi have risen at present, increasing by as high as 200 yuan/tons. Enterprises in Shandong also follows it, and adjusts the market price.

It is understood that the rising prices of aluminum oxide is caused by the supply less than the demand. Some industry insiders that Chalco Shandong adjusts the metallurgical grade aluminum oxide production plan as a result of domestic down market of aluminum oxide, and the monthly production of aluminum oxide reduces about 20000 tons. At the same time, Shandong Lubei has turned to multispecies market on production sales, which makes the practical operating capacity of aluminum oxide in Shandong district decreased.

Influenced by environmental supervision, red mud landslides, heavy rains, floods and other factors, some large and medium-sized enterprises including Chinalco Huaxing, Henan Kaiman are forced to reduce or stop the production for a short or long term. What’s more, electrolytic aluminium enterprises purchase raw material stock, which makes industrial alumina in short supply in the market, so the rising prices are inevitable.

At present, the market prices of domestic industrial aluminum oxide are about 2300-2500 yuan/ton, and the overall market prices are rising. The late prices still need to be decided according to the market supply, and is unpredictable.