Market Analysis of Brown Fused Alumina in April

In April, the market prices of brown fused alumina tend to be stable, and the market price of Al2O3≥95% tilting furnace section sand is about 3600-3700 RMB/ton in Henan.

De-capacity will be the backbone of this year nationwide. This year, the market logic is different than usual. The downstream demand is still weak, but there is a big change on the supply side. Small-scale enterprises reduce the market supply in the first quarter due to serious losses.

In early April, a brown fused alumina smelting furnace exploded in Pingdingshan, where the government put forward safety checks on brown fused alumina enterprises, which makes the supply shrinked. Affected by the recent rising steel price, the market starts rise in the last ten-day of a month. The operating rate of 60% of companies is more than 30%, 20% of companies more than 50%, 10% companies more than 66%, and 5% of companies is 100%. Of course, there are a small part of enterprises that stop the production and wait and see the market status. In the next period of time, brown fused alumina price will be supported due to the tight supply.

At present, a lot of regions in Henan still perform the peak valley price on electricity price, and the electricity price is 0.32 yuan at night, and the average electricity price is 0.52 one day. But the downstream individual materials enterprises have strict requirements, and they express that they need to smelt at night, and the toughness of brown fused alumina that is smelted only about 12 hours is somewhat poor. They prefer to smelting brown fused alumina with 16 hours.

At present, the market competition of brown fused alumina both at home and abroad has entered a white-hot stage. But any competition has a gap in the market. As long as there are right market orientation and effective management, there will be a huge living space. This would require innovation of operators, and they need to adjust the inherent management pattern, hug "Internet +", use "big data", blend in "E-business platform", and search the key to success.