White Fused Alumina Enterprises Encounter Price Reduction

In July, white fused alumina manufacturers expressed that the demand for white fused alumina is still no boost. Many manufacturers choose to limit production to market ability, and do not release excessive production capacity, so as to reduce unnecessary inventory.

The market price of domestic alumina has been declined for nearly two weeks. As a result, since the end of July, domestic white fused alumina enterprises began to cut down the quote slightly. It is reported that on August 5, the section sand price of white fused alumina whose specification is Al₂O₃≥99% in Henan area remains at 4700-4900 RMB/ton, and the price of fine powder remains at 4900-5100 RMB/ton (the above prices are all factory price including tax), which accumulatively decrease by 200-300 RMB/ton.

In the survey, we find that the current domestic white fused alumina suppliers mostly choose dumping furnace and fixed furnace in the production, and each has advantages and disadvantages. It is understood that the final product produced by dumping is not that good than that of fixed furnace in the hardness, toughness, and other aspects; And the electricity consumption of fixed furnace is larger and the first-grade product yield is low. Consequently, due to the different production process and methods, the quote of individual white fused alumina companies is temporarily stabilized. Fluctuations also exist in raw material prices. At present, they are all in slide to the situation at home and abroad. Most white fused alumina manufacturers use domestic alumina, and the decline in the raw material prices also makes the downstream products enterprises force prices down.

However, the price-off of raw material causes the price-off of white fused alumina, which does not have great consequence for the shipments of white fused alumina. On the one hand, white fused alumina enterprises give priority to supply their old customers; on the other hand, the downstream demand for refractory products is not very strong, so the impact of price fluctuations is small. Analysts think that if the price of alumina has failed to stop falling, the price of white fused alumina may continue to go downward.