Market Review of China Refractory Raw Materials for July

In July 2018, RMPI (Raw Materials Price Index) stands at 237.83, down by 2.74% compared with the previous month; up by 36.53% compared with the same period of 2017. The price of bauxite remains stable, with continuing shortage of ore supply; fluctuation situation of magnesia lasts for nearly 1 year, and the quality become urgency; flake graphite shows stable situation with expansion of the whole industrial chain; silicon carbide meets severe environmental protection struck again; alumina prices bottoms out and rebounds, pushing up WFA market price; brown fused alumina appear to be price growth against shortage of bauxite.

Calcined bauxite

In Yangquan: Calcined bauxite by shaft kilns for 80% and 85% keeps stable in price compared with the previous two months; offers of calcined bauxite by down-draft kilns for 85% and 88% show no change over the past three months in Yangquan City, Shanxi province.

As the slack season of bauxite trading arrives, demand shows flat trend and supply turns into smooth and stable conditions in local market with less inquiries which is just as expected.

The anti-pollution inspection which has started since June affects less than the expectation to local calcined bauxite production, but the shortage of ore seems to keep influence to bauxite Shanxi. 

In Xiaoyi: Rotary kiln based calcined bauxite for Al2O3≥80%, Al2O3≥85% and Al2O3≥88% keeps stable in price compared with the previous month in Xiaoyi, Shanxi province.

Previously, the ban of bauxite mining in Xiaoyi has significantly affected the whole industry, and the situation shows no change in this month, although it has learnt that one of Chinalco's mines had recovered to production and supply. At present, the external input of bauxite ore to Xiaoyi is limited because of the low purity and high transportation cost, so the supply could not be changed at current period.

Good news is that some constricted producers enter testing production, during which it will confirm whether they could meet the anti-pollution standards. The key testing factors are desulfurization and denitrification and dust removing performance. Those who will meet the inspection are reported to get permitted production qualification issued by the government department.