At the end of February, the domestic brown fused alumina Market weakened, and the prices of brown fused alumina in Henan and Guizhou fell, with a reduction range of 100 yuan / ton. The brown fused alumina Market in Shanxi was mainly stable. From the perspective of regional price difference, the sales pressure in Shanxi is great. From the price trend of brown fused alumina in the three main production areas, the current price of brown fused alumina is at a high level year-on-year. In the period of repairing the contradiction between supply and demand, the brown fused alumina market still has downward space, and the weak operation may continue to the middle of March.
After the Winter Olympics, the domestic brown fused alumina production capacity was released rapidly. As of February 24, the operating rate of domestic brown fused alumina smelting furnace was 52%, which had reached the normal level of production before the festival, and the capacity utilization rate was 45.28%. Because most enterprises began smelting after the 20th, the production rhythm was slow and there was still room for improvement, so the supply of brown fused alumina became stronger in March.
From the perspective of demand, according to the analysis and investigation, the blast furnace start-up and capacity utilization rates were 73.44% and 77.61% respectively, the week on month ratio increased by 3.85% and 2.17%, and the year-on-year decreased by 16.06% and 15.11% respectively, which is at a low level. The low molten iron output makes the year-on-year low of refractory in front of iron. In March, with the convening of the two sessions and the Paralympic Games, the resumption of blast furnace production may be delayed, the demand release speed is lower than expected, and the situation of strong supply and weak demand of brown fused alumina may continue. After the middle of March, the blast furnace is expected to resume production, the demand for refractory materials will be released, and the mismatch between supply and demand of brown fused alumina may be repaired in late March.
The biggest factors affecting the price of brown fused alumina are the light burned bauxite in the cost and the electricity price. Recently, it has been found that the light burned bauxite prices in Shanxi, Henan and Guizhou have increased by different ranges due to the restriction of bauxite development and the rise of natural gas price. At the same time, the supply is tightening. At the same time, graphite electrode and iron filings for smelting have increased, and the production cost of brown fused alumina is high and stronger.
At present, the brown fused alumina Market is in the recovery stage of supply and demand. The recovery speed of the supply side is faster than that of the demand side. It is difficult to quickly reach the balance point of supply and demand in a short time. The price of brown fused alumina still has room for reduction. At the same time, after mid March, the strong expectation of the resumption of blast furnace production has boosted the mentality of suppliers, coupled with the strong support of high cost and low inventory, It is expected that the brown fused alumina market will show a trend of first restraining and then increasing in March.
Add：Xingyang City, Henan Province, China