Survey on Operating Situation of Brown Fused Alumina in Henan

In Henan, brown fused alumina manufacturers’ quotes have been stable by the end of June, and the market quote of the tilting furnaces of Al₂O₃≥95% is between 4250 RMB/ton and 4450 RMB/ton, while the market price of fixed furnaces is 4000-4250 RMB/ton.

Aiming at the operating situation of 59 smelting furnaces of 37 brown fused alumina manufacturers in Henan, we make a survey and found the operating situation is as follows:

The survey found that brown fused alumina enterprises suffer from great pressure from the lower reaches but are pulling ahead in hardship. At present, brown fused alumina enterprises have a good first step in Henan region, but fail to get released in full capacity.

There are the following main reasons:

First, the benefit of domestic steel companies is low and the demand from the lower reaches is also weak, a lack of purchasing power, which make brown fused alumina production and marketing passive and domestic manufacturers are generally in a state of reduction of production;

Second, brown fused alumina as energy-consuming products, requires a lot of energy in the process of production, whose production cost is higher. Based on the cost of production, some enterprises choose to "avoid the peak to produce" and cut the cost to increase the profit;

Third, with measures of protection increasingly strict, the "lucky" in the past production process will have to be back on track. But for some small and medium enterprises, they lack capital support that undoubtedly accelerates the pace of "death";

Fourth, the procurement for raw materials has occupied certain fund, and the phenomenon of loan on security from the lower reaches is also serious. Therefore, enterprises have to be a lack of capital support, and have no choice but to shut down to wait and see;

Fifth, most of the brown fused alumina production enterprises in our country mainly outsource lump materials, and those enterprises that combines "production + shredded" are in a minority.

Sixth, brown fused alumina domestic manufacturers are steadily stepping into "Abrasive Industry" in order to seek diversified development. Most manufacturers say they also pay attention to terminal customer groups such as particle size sand under the condition of the normal supply of brown fused alumina.