China Abrasive Materials Weekly Price (29th July -4th August): WFA Price Continues to Drop
This week, as the current Chinese alumina market price is close to bottom line, the price of white fused alumina has also stabilized. However, due to the slow trading in the market, the price of white fused alumina still slightly drops by 50-100 yuan / ton, comparing to last week. In addition, due to the continuous shutdown of smelting enterprises in the main producing areas of Xingyang and Shangjie in Henan Province and Liaocheng in Shandong Province, the current inventory of white fused alumina in the market have been low. It is expected that in the coming week, the price of white fused alumina will end its downtrend and tend to stabilize.
This week, due to the weak domestic macroeconomic performance in 2019, the consumption of the downstream market of brown corundum continued to decline. Some people in the abrasive industry said that the production of ceramic grinding wheels in August was nearly one-third lower than that in July, so the purchase of brown fused alumina abrasives was correspondingly reduced.
Affected by weak market demand, some manufacturers have slightly lowered the price of brown fused alumina by 50-100 yuan/ton, but the overall market price of the brown fused alumina is still high.
3. Black Silicon Carbide
In July, environmental protection in Gansu and Ningxia continued to heat up, resulting in small fluctuations in some markets of black silicon carbide, and the quotation was slightly confusing. Coal-based silicon carbide enterprises are facing with the shortage of Taixi coal. The coke-based silicon carbide enterprises have turned to importing low-sulfur petroleum coke due to the high sulfur problem of domestic raw materials. The high price of raw materials has supported the price of black silicon carbide. Overall, it is expected that the price of black silicon carbide will stabilize in August.
4. Green Silicon Carbide
Recently, the supply of green silicon carbide continued to increase in the second quarter, and is expected to increase in August. Although the price of green silicon carbide has not shown signs of weakening temporarily, the delivery cycle has been shortened from the previous one month to one week presently. Overall, China's green silicon carbide market supply is indeed growing, but most of it can be digested by the downstream, and it is expected that the price will remain stable in the short term.
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