Market Analysis on Bulk Raw Materials in August

By the end of August, alumina manufacturers in China, completed a total of 72.15 million tons of production capacity and 60.43 million tons of operating capacity. The production operating ratio was about 83.76%, which fell 1.8% compared with last month. And the spot prices of domestic alumina were around 1800-1910 yuan/ton.

In early August, the factory price including tax of 80 shaft kiln bauxite in Yangquan was about 850-950 yuan/ton, 85 down-draft kiln bauxite about 1350-1450 yuan/ton and 88 down-draft kiln bauxite about 1550-1650 yuan/ton. It is estimated that the market price of bauxite will remain stable in nearly two months, and whether the price will be adjusted will depend on how to set the local tax and the implementation time.

In August, the marke prices of Al2O3≥95% tilting furnace section sand were around 3600-3700 yuan/ton (the factory price including tax) in Henan, which remain flat last month. In July 2016, the environmental protection check in Henan is quite stricter, which made most of brown fused alumina manufacturers in the shutdown state. They have expressed that they are in destocking status and gave priority to old customers, and the factory price was not adjusted temporarily.

Some companies that had sold out all of inventory, were still unable to produce in August, which made their downstream customers reduced. Through comprehensive analysis, if the environmental factors are difficult to eliminate in the short term, the price of brown fused alumina might be raised.