Survey Report of Brown Fused Alumina Manufacturers and Productivity in Henan

In 2016, brown fused alumina manufacturers’ offers are firm in Henan. At present, the market price of Al2O3≥95% section sand dumping furnace is around 4250-4450 RMB/ton, and the market price of fixed furnace is about 4000-4250 RMB/ton.

It is found that brown fused alumina enterprises suffer a lot from the downstream, moving ahead with difficulty. And now brown fused alumina enterprises have started to produce but fail to get released in full capacity in Henan region. The main reasons include the following several aspects:

First, the current domestic steel companies have low benefits, and the downstream demand is weak, with a lack of purchasing power. It makes the production and marketing passive degree of brown fused alumina deepened, and most domestic manufacturers are generally in a state of production reduction;

Second, brown fused alumina belongs to energy-consuming products, and requires a lot of energy in the process of production, so the production cost is higher. Based on the cost of production, some enterprises choose to reduce the production and improve the efficiency;

Third, the regulation of environmental protection is increasingly strict, which makes the "lucky" in the past production process have to be back on track. But for some small and medium enterprises, a lack of capital support undoubtedly accelerates the pace of "death";

Fourth, raw materials procurement has occupied certain fund, and the downstream loan on security phenomenon is serious. Therefore, many enterprises lack the capital support and have to choose to shut down to wait and see;

Fifth, at present, most of brown fused alumina production enterprises mainly depend on outsourcing materials, and enterprises that are devoted to "production + smashing + smelting” are in a minority.

Sixth, domestic manufacturers of brown fused alumina is steadily heading into abrasives products industry, in order to seek diversified development. Most manufacturers says that they will give consideration to size sand, section sand, and other terminal customer group under the condition of the normal supply of brown fused alumina abrasives.