Market Weather Vane-Part 2
Aug. 28, 2020
The price of Henan white corundum fluctuates and falls
In mid-August, the high-end price of the white corundum market in Henan decreased and moved closer to the low-end. At present, the mainstream market price of white corundum segment sand is concentrated in the range of 4000 yuan/ton to 4250 yuan/ton (ex-factory tax included), and lower prices are also heard .
The industry believes that the price of 4,000 yuan/ton is a threshold for white corundum, but prices of 3,800 yuan/ton and 3,900 yuan/ton have appeared, which continue to lower the market price of white corundum. The shipments of white fused alumina companies have been stagnant, and they have actively taken measures to save themselves: some white fused alumina companies in Xingyang purchased the brown fused alumina companies that had stopped production in Dengfeng, and used the transformation to produce white fused alumina; some companies invested and built factories in Zouping to use the abundant local alumina and electricity Resources produce low-priced white corundum; a factory in Zhengzhou began to develop ultra-low sodium white corundum, aiming at high-end refractory products. In the context of the market downturn, companies are looking for their own way out.
Overall, the white corundum market in Henan has more negative factors, and the downturn will continue in the later period.
Gansu silicon carbide prices maintain stable operation
In mid-August, Gansu silicon carbide prices continued to maintain stable operation. 97 silicon carbide blocks were quoted at 5400 yuan/ton with ex-factory tax, 98 silicon carbide blocks were quoted at about 5500 yuan/ton with ex-factory tax, and 88-90 silicon carbide blocks were quoted at 4300. Around RMB/ton.
Since August, the price of silicon carbide in Gansu has maintained a steady state. Although the market is lower than the mainstream quotation, the overall market mainstream price has not been disturbed. The next few months will also be the most critical months for companies to increase sales and maintain business. In combination with the environmental protection requirements of the northern heating season, continuous efforts to maintain price stability and restore sales are very important. Price wars are critical to the long-term interests of all manufacturers. There is no benefit.
In summary, there is a consensus in the Gansu silicon carbide industry on maintaining price stability.
Henan brown corundum market price center shifts down
Entering August, the brown corundum market in Henan is not trending well, and the price center continues to move downward. The current price of brown corundum segment sand market is 4500 yuan/ton ~ 4700 yuan/ton (ex-factory tax included), and the cash shipment price of some companies is 4400 Yuan/ton~4500 Yuan/ton.
It is understood that many brown fused alumina production enterprises in Henan have stopped production, with less than 20% of the production enterprises. Enterprises generally report that orders this year will be reduced by at least 50% compared to last year. On the one hand, the demand is poor, and on the other hand, the impact of white fused alumina on brown fused alumina. At present, the price of white corundum section sand is 300 yuan/ton to 500 yuan/ton lower than that of brown corundum. The replacement of brown corundum by white corundum is common, which also lowers the market price of brown corundum.
On the whole, the expectation of the brown fused alumina market in Henan is hardly optimistic.
The tight supply of graphite is still related to environmental protection
In mid-August, the price of flake graphite -196 in the Shandong market was about 4100 yuan/ton, the price of -195 was about 3700 yuan/ton to 3650 yuan/ton, and the price of -194 was 3450 yuan/ton. The price of flake graphite in Shandong appeared Temporarily stable market conditions, the flake graphite market is still tight.
It is understood that the market price of Zhengmu in Shandong did not continue to rise sharply. There are 6 graphite flake manufacturers with very little standing inventory of normal eyes, and most of them are hovering between half a month or even zero inventory. At present, the reasons for the tight supply of graphite flakes are mostly surrounding factors such as environmental protection and the failure of flotation equipment to start normally, and the conflicts will become more prominent after the heating season in the future.