Market Analysis of Brown Fused Alumina in February and March

At present, the market prices (including tax) of Al2O3≥95% tilting furnace section sand are around 4100-4200 Yuan/ton; In Shanxi and Guizhou, the prices of Al2O3≥95% tilting furnace section sand are both around 4000-4100 Yuan/ton.

According to the survey, there are 20 sets of tilting furnaces but only 14 sets of tilting furnaces are running in seven brown fused alumina enterprises. The overall capacity utilization is 76.92%, with an increase of 15.39% earlier this month. Influenced by environmental protection, Henan and Shanxi have imposed a new round of strict production stoppages impacting fused alumina and bauxite output, and some brown fused alumina enterprises have to limit the production.

At present, Guizhou has already canceled the preferential prices, and raised 0.1 Yuan of per kilowatt-hour than before, so the consumption costs are increased about 200 Yuan/ton. Now, high quality bauxite is in short supply in Guizhou, and some manufacturers have raised about 50 Yuan/ton. In the cost accounting of brown fused alumina, the electricity consumption and raw materials prices are the main two factors. It is learned that the electricity prices may be reduced in May and June, but not now.

Thus, the current operating rate of brown fused alumina enterprises in Guizhou is relatively stable, but still affected by cash flow, some large-scale enterprises have 1000 tons of inventory but most of enterprises produce according to orders. Because the output in Henan and Shanxi is both decreased, some of brown fused alumina enterprises in Guizhou says that their orders are being increased more obviously. It is predicted that brown fused alumina in Guizhou will keep stable running in early to mid–March, and later may be increased.