Market Demand Decline of Refractory Material and the Downstream Industry

In the first half of this year, there are 12 export products among refractory materials and products whose export average prices are reduced, in addition to bentonite and "sanshi". In refractory raw materials, the average prices of aluminum refractory clay, fused magnesia, sintered magnesia, white fused alumina and silicon carbide are reduced sharply, which respectively are 16.8%, 10.39%, 12.09%, 13.02% and 5.36% on year-on-year basis.

In three varieties of refractory products, the export average prices of alkaline refractory products, aluminium siliceous refractory products and other refractory products all have obvious decrease, which respectively are 8.42%, 31.63% and 0.69% compared to the same period last year.

Although the market demand is gradually reduced, which could lead to the decline of export volume, the decline of export prices are mainly caused by market competition. It should be paid high attention for some export enterprises.

After years of rapid development, the market demand has reached the peak, so it is inevitable for the falling market demand, which also conforms to the law of economic development. Therefore, the falling market demand is irreversible, and it is difficult to improve in the short term. Combined with severe overcapacity, it will inevitably lead to market order confusion and market price fluctuations,a nd is also difficult to change the situation that enterprises only run for small profit in the short term.

Production enterprises, therefore, should have sober understanding and rational treatment for current economic operation situation and market demand. Through technical innovation and structural adjustment to adapt to the market, rather than letting the market to adapt to the development of enterprises, they can gain a foothold and obtain stable development in the complex market environment.