Monthly Fused Alumina Market Report May 2023

2023-06-12 08:51:13 【Print】

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Contents

1 Market Highlights 3
2 Economy and Policy 3
3 Market Movement 3
3.1 Chinese Market 3
3.1.2 Brown fused alumina 95%min F36 EXW China 3
3.1.3 White fused alumina 99%min 1-3mm EXW China 3
3.1.4 White fused alumina 99%min F36 EXW China 3
3.2 Chinese Export Market 4
3.2.1 Brown fused alumina 95%min 1-3mm FOB China 4
3.2.2 Brown fused alumina 95%min F36 FOB China 4
3.2.3 White fused alumina 99%min 1-3mm FOB China 4
3.2.4 White fused alumina 99%min F36 FOB China 4
3.3 International Market 4
3.3.1 Brown fused alumina 95%min 1-3mm EXW India 4
3.3.2 Brown fused alumina 95%min F36 EXW India 4
3.3.3 Brown fused alumina 95%min 1-3mm in Warehouse Rotterdam 5
3.3.4 White fused alumina 99%min 1-3mm in Warehouse Rotterdam 5
4 Company news 5
4.1 Guizhou Dazhong suspended brown fused alumina production 5
4.2 Jinlv Refractory suspended white fused alumina production 5
4.3 Guizhou Jinyi stopped brown fused alumina production 5
5 Producer Statistics 5
5.1 Chinese brown fused alumina producers' statistics 5
5.1.2 Chinese brown fused alumina producers' output down by 3.63% MoM in May 6
5.1.3 Chinese brown fused alumina producers' inventory down by 7.97% MoM in May 6
5.2 Chinese white fused alumina producers' statistics 7
5.2.1 Chinese white fused alumina producers' operating rate down by 0.22% MoM in May 7
5.2.3 Chinese white fused alumina producers' inventory up by 3.27% MoM in May 7
6 Custom Statistics 8
6.1 China's brown fused alumina export volume grew 28.36% MoM in Apr 2023 8
6.2 China's white fused alumina export volume decreased 27.29% YoY in Apr 2023 9
7 Relevant Industry News 10
8 Market Outlook for Next Month 10
8.1 Chinese Market 10
8.1.1 Brown fused alumina 95%min 1-3mm EXW China 10
8.1.2 Brown fused alumina 95%min F36 EXW China 10
8.1.3 White fused alumina 99%min 1-3mm EXW China 10
8.1.4 White fused alumina 99%min F36 EXW China 10
8.2 Chinese Export Market 10
8.2.1 Brown fused alumina 95%min 1-3mm FOB China 10
8.2.2 Brown fused alumina 95%min F36 FOB China 10
8.2.3 White fused alumina 99%min 1-3mm FOB China 10
8.2.4 White fused alumina 99%min F36 FOB China 10
8.3 International Market 10
8.3.1 Brown fused alumina 95%min 1-3mm EXW India 10
8.3.2 Brown fused alumina 95%min F36 EXW India 10
8.3.3 Brown fused alumina 95%min 1-3mm in Warehouse Rotterdam 10
8.3.4 White fused alumina 99%min 1-3mm in Warehouse Rotterdam 10

1 Market Highlights

Brown fused alumina:
Given the sluggish Market demand, most producers cut their prices this month to boost sales.

Considering the dropped domestic prices and weak overseas demand, most exporters reduced their prices this month.

Considering the low prices pressure from Chinese competitors, most Indian producers cut their prices this week to maintain sales.

Based on the declined prices from Chinese suppliers and weak demand, most suppliers in European lower their prices this month.

White fused alumina:
Despite the stable alumina prices, given the sluggish demand, most producers cut their prices this month to compete for orders.

Most exporters cut their prices to boost sales on basis of the reduced domestic prices and weak Market demand.

Based on the declined prices from Chinese suppliers and weak demand, most suppliers in European lower their prices this month.

2 Economy and Policy

2.1 China to scale up medium and long-term lending toward manufacturing sector
China is ready to unleash the potential of consumption further and create a consumption supply system of high-quality, said an official from the National Development and Reform Commission (NDRC) at a news conference held on May 17. According to NDRC, new efforts will be put in place to stabilize and expand investment in manufacturing. Efforts will also be made in providing more medium- and long-term loans towards manufacturing to realize high-quality growth of the sector.

2.2 Ministry of Commerce: China's outward non-financial direct investment up by 26.6% YOY in Jan-Apr
On May 22, the Ministry of Commerce released the data showing that from January to April 2023, China's outward investment continued to grow, with outward non-financial direct investment reaching RMB289.29 billion, a year-on-year increase of 26.6% (equivalent to USD42.19 billion, a year-on-year increase of 17.6%). The non-financial direct investment of Chinese enterprises in the countries along the "Belt and Road" recorded USD7.53 billion, up bu 9% YOY, accounting for 17.8% of the total amount in the same period.

3 Market Movement

3.1 Chinese Market

By the end of May, the mainstream prices of Chinese brown fused alumina 95%min 1-3mm stood at RMB4,500-4,700/t (USD632-660/t) Inc-VAT EXW D/A 180 days, down by RMB100/t (USD14/t) MoM. Despite the firm production costs, given the sluggish Market demand, most producers cut their prices this month to compete for orders.

Prices of brown fused alumina 95%min 1-3mm EXW China from 2023-04-01 to 2023-05-31 (RMB/t)

3.1.2 Brown fused alumina 95%min F36 EXW China
In late May, the mainstream prices of Chinese brown fused alumina 95%min F36 stood at RMB5,000-5,200/t (USD702-730/t) Inc-VAT EXW D/P, down by RMB200/t (USD28/t) MoM. Despite the firm production costs, most producers, given the sluggish Market demand, cut their prices this month to compete for orders.

Prices of brown fused alumina 95%min F36 EXW China from 2023-04-01 to 2023-05-31 (RMB/t)

3.1.3 White fused alumina 99%min 1-3mm EXW China
By the end of May, the mainstream prices of white fused alumina 99%min 1-3mm stood at RMB4,330-4,430/t (USD608-622/t) Inc-VAT EXW D/P, down by RMB70/t (USD10/t) MoM. Despite the high production costs, most producers, given the sluggish Market demand, cut their prices this month to compete for orders.

Prices of white fused alumina 99%min 1-3mm EXW China from 2023-04-01 to 2023-05-31 (RMB/t)

3.1.4 White fused alumina 99%min F36 EXW China
In late May, the mainstream prices of Chinese white fused alumina 99%min F36 stayed at RMB4,650-4,850/t (USD653-681/t) Inc-VAT EXW D/P, down by RMB150/t (USD21/t) MoM. Despite the firm production costs, considering the sluggish Market demand, most producers cut their prices this month to compete for orders.

Prices of white fused alumina 99%min F36 EXW China from 2023-04-01 to 2023-05-31 (RMB/t)

3.2 Chinese Export Market

3.2.1 Brown fused alumina 95%min 1-3mm FOB China
By the end of May, the mainstream export prices of Chinese brown fused alumina 95%min 1-3mm stood at USD650-670/t Ex-VAT FOB China, down by USD20/t MoM. Owing to the reduced domestic prices and the weak Market demand, most exporters cut their prices.

Price trend of brown fused alumina 95%min 1-3mm FOB China from 2023-04-01 to 2023-05-31 (USD/t)

3.2.2 Brown fused alumina 95%min F36 FOB China
In late May, the mainstream export prices of Chinese brown fused alumina F36 stayed at USD720-740/t FOB China, down by USD40/t MoM. Due to the weak Market demand, most exporters cut their prices to boost sales.

Price trend of brown fused alumina 95%min F36 FOB China from 2023-04-01 to 2023-05-31 (USD/t)

3.2.3 White fused alumina 99%min 1-3mm FOB China
By the end of May, the export prices of Chinese white fused alumina 99%min 1-3mm increased to USD620-640/t FOB China, down by USD10/t MoM. Due to the weak Market demand, most exporters cut their prices to boost sales.

Price trend of white fused alumina 99%min 1-3mm FOB China from 2023-04-01 to 2023-05-31 (USD/t)

3.2.4 White fused alumina 99%min F36 FOB China

In late May, the mainstream export prices of Chinese white fused alumina 99%min F36 stayed at USD660-680/t FOB China, down by USD40/t MoM. Owing to the reduced domestic prices and the weak Market demand, most exporters cut their prices.

Price trend of white fused alumina 99%min F36 FOB China from 2023-04-01 to 2023-05-31 (USD/t)

3.3 International Market

3.3.1 Brown fused alumina 95%min 1-3mm EXW India
By the end of May, the mainstream prices of brown fused alumina 95%min 1-3mm in Indian Market stayed at INR78,000-79,000/t Inc-VAT EXW T/T 45 days, down by INR1,000/t from late last week. Considering the low prices pressure from Chinese competitors, most Indian producers cut their prices this week to maintain sales.

Price trend of brown fused alumina 95%min 1-3mm EXW India from 2023-04-01 to 2023-05-31 (INR/t)

3.3.2 Brown fused alumina 95%min F36 EXW India
By the end of May, the mainstream prices of brown fused alumina 95%min F36 in Indian Market stood at INR79,000-80,000/t Inc-VAT EXW T/T 45 days, down by INR1,000/t from late last week. Considering the low prices pressure from Chinese competitors, most Indian producers cut their prices this week to maintain sales.

Price trend of brown fused alumina 95%min F36 EXW India from 2023-04-01 to 2023-05-31 (INR/t)

3.3.3 Brown fused alumina 95%min 1-3mm in Warehouse Rotterdam
In late May, the mainstream prices of European brown fused alumina 95%min 1-3mm stood at EUR705-755/t T/T 30 days in Warehouses Rotterdam, down by EUR35/t MoM. Based on the declined prices from Chinese suppliers and weak demand, most suppliers in European lower their prices this month.

Price trend of brown fused alumina 95%min 1-3mm in Warehouse Rotterdam from 2023-04-01 to 2023-05-31 (EUR/t)

3.3.4 White fused alumina 99%min 1-3mm in Warehouse Rotterdam
By the end of May, the mainstream prices of white fused alumina 99%min 1-3mm hovered at EUR670-720/t in Warehouse Rotterdam, down by EUR30/t MoM. Based on the declined prices from Chinese suppliers and weak demand, most suppliers in European lower their prices this month.

Price trend of white fused alumina 95%min 1-3mm in warehouse Rotterdam from 2023-04-01 to 2023-05-31 (EUR/t)

4 Company news

4.1 Guizhou Dazhong suspended brown fused alumina production
A major brown fused alumina producer in Guizhou, Guizhou Dazhong No.7 Grinding Wheel Co., Ltd. suspended production in early May due to sluggish demand, with an output of nearly 1,000t in April. "We halted production in early May due to sluggish market demand after a short resumption of production in early April", a source from the company claimed, noting that they produced about 1,000t in the past month but stopped immediately facing the terrible sales. With a production capacity of 120,000tpy, the company produced about 8,000t in the previous year and they expected to produce only 2,000t this year due to sluggish demand. They hold an inventory of almost 1,800t at present.

4.2 Jinlv Refractory suspended white fused alumina production
Chalco Jinlv Refractory Materials Co., Ltd., a major white fused alumina producer in China, suspended their white fused alumina production on in early May due to the sluggish market demand, with an output of nearly 500t in May. "We stopped our production in early May because the dormant end market and over-sufficient supply lead to fierce competition. We closed no deal in the past month and even don't receive any inquiries", a source from the company stated, noting that they produced about only 500t in April. With an annual production capacity of 30,000t, they produced about 7,600t in the previous year, while they expected to produce around only 5,000t in 2023 due to the sluggish demand. Currently they hold around 800t in stock.

4.3 Guizhou Jinyi stopped brown fused alumina production
A major brown fused alumina producer in Guizhou, Guizhou Jinyi Abrasive Materials Co., Ltd. halted their production on 15th May because of the sluggish downstream demand, producing about 400t in May. "We just resumed their brown fused alumina production in early April but given the sluggish market demand, they stopped their production again in mid-May", a source from the company stated, noting that they produced about 800t in the past month and only 400t this month. With a production capacity of 45,000tpy, the company produced about 5,000t in the previous year and they expected to keep same production scale this year on basis of the terrible market demand. They currently keep an inventory of almost 600t.

5 Producer Statistics

5.1 Chinese brown fused alumina producers' statistics

5.1.1 Chinese brown fused alumina producers' operating rate down by 0.83% MoM in May
In May 2023, China's operating rate of brown fused alumina producers was 28.39%, down by 0.83% MoM and down by 4.50% YoY.

Chinese brown fused alumina producers' operating rate from May 2022 to May 2023 (t)

In May 2023, the operation rate of producers in Henan was 20.93%, down by 1.08% MoM and up by 1.14% YoY; that in Guizhou was 25.43%, down by 1.18% MoM and down by 13.05% YoY; that in Shanxi was 45.33%, unchanged MoM and down by 14.87% YoY; that in other area was 57.66%, unchanged MoM and down by 5.15% YoY.

Chinese brown fused alumina producers' operating rate from May 2022 to May 2023 (t)

5.1.2 Chinese brown fused alumina producers' output down by 3.63% MoM in May
In May 2023, Chinese brown fused alumina producers' output was 76,900t, down by 3.63% MoM and down by 17.22% YoY.

Chinese brown fused alumina producers' output from May 2022 to May 2023

In May 2023, the output in Henan was 29,200t, down by 6.41% MoM and down by 1.68% YoY; that in Guizhou was 19,500t, down by 4.41% MoM and down by 33.89% YoY; that in other area was 16,000t, unchanged MoM and down by 15.78% YoY; that in Shanxi was 12,200t, unchanged MoM and down by 17.00% YoY.

Chinese brown fused alumina producers' output by province from
May 2022 to May 2023

5.1.3 Chinese brown fused alumina producers' inventory down by 7.97% MoM in May
In May2023, Chinese brown fused alumina producers' inventory was 99,200t, down by 7.97% MoM and up by 8.20% YoY.

Chinese brown fused alumina producers' inventory from May 2022 to May 2023(t)

In May 2023, the brown fused alumina producers' inventory in Henan was 39,100t, down by 6.23% MoM and up by 25.25% YoY; that in Guizhou was 31,100t, down by 11.39% MoM and up by 5.42% YoY; that in Shanxi was 15,000t, unchanged MoM and down by 18.91% YoY; that in other area was 14,000t, down by 12.5% MoM, down by 22.22% YoY.

Chinese brown fused alumina producers' inventory by province from
May 2022 to May 2023(t)

5.2 Chinese white fused alumina producers' statistics

5.2.1 Chinese white fused alumina producers' operating rate down by 0.22% MoM in May
In May 2023, Chinese white fused alumina producers' operating rate was 38.76%, down by 0.22% MoM and down by 1.42% YoY.

Chinese white fused alumina producers' operating rate from May 2022 to May 2023 (%)

In May 2023, the operating rate of white fused alumina producers in Henan was 44.17%, up by 0.13% MoM and up by 0.65% YoY; that in Shandong was 30.93%, down by 0.12% MoM and down by 3.80% YoY; that in other area was 38.4%, down by 9.60% MoM, down by 5.76% YoY.

Chinese white fused alumina producers' operating rates by province from May 2022 to May 2023

5.2.2 Chinese white fused alumina producers' output down by 0.56% MoM in May
In May 2023, Chinese white fused alumina producers' output was 79,400t, down by 0.56% MoM and down by 1.12% YoY.

Chinese white fused alumina producers' output from May 2022 to May 2023

In May 2023, the white fused alumina producers' output in Henan was 52,200t, up by 0.28% MoM and up by 2.35% YoY; that in Shandong was 25,200t, down by 0.39% MoM and down by 6.67% YoY; that in other area was 2,000t, down by 20% MoM and up by 15% YoY.

Chinese white fused alumina producers' output by province from May 2022 to May 2023 (t)

5.2.3 Chinese white fused alumina producers' inventory up by 3.27% MoM in May
In May 2023, Chinese white fused alumina producers' inventory was 49,600t, up by 3.27% MoM and up by 43.35% YoY.

Chinese white fused alumina producers' inventory from May 2022 to May 2023 (t)

In May 2023, the white fused alumina producers' inventory in Henan was 32,500t, up by 3.07% MoM and up by 27.95% YoY; that in Shandong was 15,300t, up by 0.65% MoM and up by 86.58% YoY; that in other area was 1,800t, up by 38.46% MoM and up by 80% YoY.

Chinese white fused alumina producers' inventory by province from
May 2022 to May 2023 (t)

6 Custom Statistics

6.1 China's brown fused alumina export volume grew 28.36% MoM in Apr 2023
In Apr 2023, China exported 41,137.06mt of brown fused alumina, 46,072.76mt in the same period last year and 32,048.34mt in the previous month, down 10.71% YoY and up 28.36% MoM.
In Apr 2023, China exported USD42,558,321.00 worth of brown fused alumina, USD60,498,525.00 in the same period last year and USD62,339,422.00 in the previous month, down 29.65% YoY and down 31.73% MoM. The average price was USD1,034.55/mt, USD1,313.11/mt in the same period last year and USD1,945.17/mt in the previous month.
In Jan-Apr 2023, China exported a total of 136,422.85mt of brown fused alumina, 139,937.25mt in the same period last year, down 2.51% YoY.

China's export volume of brown fused alumina in previous 13 months

China's export price of brown fused alumina in previous 13 months

In Apr 2023, the top three export destinations of brown fused alumina for China were United States, Japan and Malaysia.
China exported 12,538.70mt of brown fused alumina to United States, 10,778.75mt in the same period last year and 1,401.44mt in the previous month, up 16.33% YoY and up 794.70% MoM. The average price was USD736.17/mt, USD667.12/mt in the same period last year and USD707.82/mt in the previous month, up 10.34% YoY and up 3.95% MoM.
China exported 4,618.89mt of brown fused alumina to Japan, 3,043.27mt in the same period last year and 4,521.75mt in the previous month, up 51.77% YoY and up 2.15% MoM. The average price was USD1,152.04/mt, USD1,953.35/mt in the same period last year and USD1,510.53/mt in the previous month, down 41.01% YoY and down 23.76% MoM.
China exported 3,161.75mt of brown fused alumina to Malaysia, 222.50mt in the same period last year and 2,146.81mt in the previous month, up 1,321.01% YoY and up 47.28% MoM. The average price was USD537.09/mt, USD2,196.18/mt in the same period last year and USD1,121.40/mt in the previous month, down 75.55% YoY and down 52.10% MoM.

China's export volume of brown fused alumina to top three countries in previous 13 months

China's export price of brown fused alumina to top three countries in previous 13 months

6.2 China's white fused alumina export volume decreased 27.29% YoY in Apr 2023
In Apr 2023, China exported 31,181.34mt of white fused alumina, 42,882.92mt in the same period last year and 35,942.05mt in the previous month, down 27.29% YoY and down 13.25% MoM.
In Apr 2023, China exported USD35,544,080.00 worth of white fused alumina, USD59,000,936.00 in the same period last year and USD54,068,143.00 in the previous month, down 39.76% YoY and down 34.26% MoM. The average price was USD1,139.92/mt, USD1,375.86/mt in the same period last year and USD1,504.31/mt in the previous month.
In Jan-Apr 2023, China exported a total of 117,790.83mt of white fused alumina, 133,655.65mt in the same period last year, down 11.87% YoY.

China's export volume of white fused alumina in previous 13 months

China's export price of white fused alumina in previous 13 months

In Apr 2023, the top three export destinations of white fused alumina for China were India, Turkey and Japan.
China exported 3,581.80mt of white fused alumina to India, 3,426.54mt in the same period last year and 2,958.87mt in the previous month, up 4.53% YoY and up 21.05% MoM. The average price was USD902.19/mt, USD1,840.15/mt in the same period last year and USD981.62/mt in the previous month, down 50.98% YoY and down 8.15% MoM.
China exported 3,487.00mt of white fused alumina to Turkey, 5,003.85mt in the same period last year and 2,655.50mt in the previous month, down 30.31% YoY and up 31.31% MoM. The average price was USD922.92/mt, USD955.19/mt in the same period last year and USD1,419.31/mt in the previous month, down 3.35% YoY and down 34.95% MoM.
China exported 3,180.90mt of white fused alumina to Japan, 2,321.14mt in the same period last year and 4,030.28mt in the previous month, up 37.04% YoY and down 21.07% MoM. The average price was USD1,248.85/mt, USD2,452.23/mt in the same period last year and USD1,765.31/mt in the previous month, down 49.06% YoY and down 29.24% MoM.

China's export volume of white fused alumina to top three countries in previous 13 months

China's export price of white fused alumina to top three countries in previous 13 months

7 Relevant Industry News

7.1 Caustic calcined bauxite
The light burn calcined bauxite Al2O3 85%min prices stood firm in the past month, which lead to the stable production costs of brown fused alumina.

7.2 Alumina Powder
The price of alumina Al2O3 98.5%min Na2O 0.3%max stood stable in the past month, which supported the firm prices of white fused alumina.

7.3 Carbon electrode
Discouraged by the prices decline of petroleum coke, the mainstream prices moved down in the past month.

8 Market Outlook for Next Month

8.1 Chinese Market

8.1.1 Brown fused alumina 95%min 1-3mm EXW China
As the Market prices already decreased close to production cost line, most producers already cut or even halted production rather than lowering their prices further next month.

8.1.2 Brown fused alumina 95%min F36 EXW China
As the Market prices already dropped close to production cost line, most producers already decreased or even suspended production instead of cutting their prices further.

8.1.3 White fused alumina 99%min 1-3mm EXW China
As the alumina price keep stable, most producers would firm their prices next month.

8.1.4 White fused alumina 99%min F36 EXW China
As the alumina price keep steady, most producers would hold their prices firm next month.

8.2 Chinese Export Market

8.2.1 Brown fused alumina 95%min 1-3mm FOB China
Considering the stabilized domestic prices, the export prices would increase next month.

8.2.2 Brown fused alumina 95%min F36 FOB China
Given the flattened domestic prices, the export prices would rise next month.

8.2.3 White fused alumina 99%min 1-3mm FOB China
Considering the steady domestic prices, the export prices would move up next month.

8.2.4 White fused alumina 99%min F36 FOB China
Considering the stable domestic prices, the export prices would go up next month.

8.3 International Market

8.3.1 Brown fused alumina 95%min 1-3mm EXW India
Though the prices in Chinese Market decreased, most Indian producers still intend to keep their prices firm based on firm production cost and no inventory pressure.

8.3.2 Brown fused alumina 95%min F36 EXW India
Though the prices in Chinese Market decreased, most Indian producers still intend to keep their prices firm based on firm production cost and no inventory pressure.

8.3.3 Brown fused alumina 95%min 1-3mm in Warehouse Rotterdam
Based on the stable prices in Chinese export Market, the prices in Europe would keep stable next month.

8.3.4 White fused alumina 99%min 1-3mm in Warehouse Rotterdam
Based on firm prices in Chinese export Market, the prices in Europe would stay steady next month.