Purchasing Summary of Refractory Raw Material in Henan

July of 2015 has already passed, and the refractory industry generally is not looked upon favorably this year, but many companies still lead the way in the night, to explore their own dawn. In the end of this month, reporters learn and summarize – purchasing of refractory raw material in the first half of this year in Henan.

Through research, in the first half of this year, the raw material purchasing presents the following features:

A. Commodities adjust measures to local conditions. Henan region is a major production base of white fused alumina, brown fused alumina, so companies would like to choose more suppliers nearby. In addition to convenient supply, these enterprises are basically partners for many years, and their supply are stable and won't have too much change. And because of regional restrictions of bauxite and silicon carbide, purchasers pay more attention to the price and quality. It is reported that purchasers would like to go to Shanxi to visit in order to ensure the quality of products before purchasing alumina. And for silicon carbide, purchasers are more focused on the price. For the same quality of silicon carbide, if new suppliers offer lower price than that of old suppliers to a certain extent, purchasers will consider to replace or add new suppliers if financing and payment conditions are allowed.

B. It all depends for additives. Generally, purchasers will choose production enterprises for larger dosage of additives, and will give preference to local dealers for other additives. Generally speaking, they are mostly perennial cooperation and will not be replaced. But for binders that can seriously affect the quality of products, such as silicon metal powder, aluminum powder, even if it is small dosage, purchasers must be very careful. Once traders find the quality of products is unstable and it must be immediately replaced. Manufacturers are the first choice for many purchasers because their prices are generally lower than that of traders. Even for cash, purchasers will have to consider the quality of products.

C. The phenomenon of loan on security is serious. It is hard for purchasers to get back money because of serious loan on security of steel mills. They have to transfer funds pressure on the downstream suppliers. Even if it is only small amounts of additives, the loan on security is unavoidable due to many years of cooperation. It is reported that some large-scale production enterprise in Henan can borrow money on security about hundreds of millions. In order to alleviate the pressure of the suppliers, the raw material suppliers of this enterprise are three or more commonly.

Purchasing of refractory raw material in Henan is a miniature of refractory industries in China. Though the industry form is not looked upon favorably, it is not allowed to be given up.