Monthly Fused Alumina Market Report Aug 2023

2023-09-12 08:23:53 【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 Guangxi Pingguo resumed production of brown fused alumina 5
4.2 Zhengzhou Pingyuan suspended white fused alumina production 5
4.3 Guizhou Hongsheng to resume production of brown fused alumina 5
4.4 Gongyi Yuhai suspended brown fused alumina production 5
4.5 Zhengzhou Yuzhou resumed white fused alumina production 5
5 Producer Statistics 6
5.1 Chinese brown fused alumina producers' statistics 6
5.1.2 Chinese brown fused alumina producers' output up by 1.38% MoM in August 6
5.1.3 Chinese brown fused alumina producers' inventory down by 0.26% MoM in August 6
5.2 Chinese white fused alumina producers' statistics 7
5.2.1 Chinese white fused alumina producers' operating rate up by 0.55% MoM in August 7
5.2.3 Chinese white fused alumina producers' inventory up by 3.09% MoM in August 8
6 Custom Statistics 8
6.1 China's brown fused alumina export volume declined 24.12% YoY in Jul 2023 8
7 Relevant Industry News 9
8 Market Outlook for Next Month 9
8.1 Chinese Market 9
8.1.1 Brown fused alumina 95%min 1-3mm EXW China 9
8.1.2 Brown fused alumina 95%min F36 EXW China 9
8.1.3 White fused alumina 99%min 1-3mm EXW China 9
8.1.4 White fused alumina 99%min F36 EXW China 9
8.2 Chinese Export Market 9
8.2.1 Brown fused alumina 95%min 1-3mm FOB China 9
8.2.2 Brown fused alumina 95%min F36 FOB China 9
8.2.3 White fused alumina 99%min 1-3mm FOB China 9
8.2.4 White fused alumina 99%min F36 FOB China 9
8.3 International Market 9
8.3.1 Brown fused alumina 95%min 1-3mm EXW India 9
8.3.2 Brown fused alumina 95%min F36 EXW India 9
8.3.3 Brown fused alumina 95%min 1-3mm in Warehouse Rotterdam 9
8.3.4 White fused alumina 99%min 1-3mm in Warehouse Rotterdam 9

1 Market Highlights

Brown fused alumina:
Given the sluggish market demand, despite the firm production costs, most producers cut their prices this month.

Due to the weak market demand, plus the soft domestic prices, most exporters cut their prices.

Considering the low prices 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:
Given the increased alumina prices, most producers lift their prices this month.

Most exporters lift their prices on basis of the lifted domestic prices, though the weak market demand.

Based on the increased prices from Chinese suppliers, though the weak demand, most suppliers in European lift 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 August 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 China H1 foreign trade exceeds 20 trillion yuan for first time
China's total goods imports and exports volume rose by 2.1% year-on-year to 20.1 trillion yuan (2.81 trillion U.S. dollars) in the first half of 2023, and it is the first time the country's foreign trade volume exceeded the 20 trillion yuan mark in the January-June period, according to the General Administration of Customs. In the first six months, China's exports hit 11.46 trillion yuan (1.6 trillion U.S. dollars), up by 3.7% YoY, while imports slightly declined by 0.1% YoY to 8.64 trillion yuan (1.21 trillion U.S. dollars).

3 Market Movement

3.1 Chinese Market

By the end of August, the mainstream prices of Chinese brown fused alumina 95%min 1-3mm stood at RMB4,450-4650/t (USD608-636/t) Inc-VAT EXW D/A 180 days, down by RMB50/t (USD7/t) MoM. Given the sluggish market demand, despite the firm production costs, most producers cut their prices this month.

Prices of brown fused alumina 95%min 1-3mm EXW China from 2023-07-01 to 2023-08-30 (RMB/t)

3.1.2 Brown fused alumina 95%min F36 EXW China
In late August, the mainstream prices of Chinese brown fused alumina 95%min F36 stood at RMB4,900-5,100/t (USD670-697/t) Inc-VAT EXW D/P, down by RMB100/t (USD14/t) MoM. Given the sluggish market demand, despite the firm production costs, most producers cut their prices this month.

Prices of brown fused alumina 95%min F36 EXW China from 2023-07-01 to 2023-08-30 (RMB/t)

3.1.3 White fused alumina 99%min 1-3mm EXW China
By the end of August, the mainstream prices of white fused alumina 99%min 1-3mm stood at RMB4,320-4,420/t (USD591-604/t) Inc-VAT EXW D/P, up by RMB20/t (USD3/t) MoM. Given the high production costs, most producers, despite the sluggish market demand, most producers lift their prices this month.

Prices of white fused alumina 99%min 1-3mm EXW China from 2023-07-01 to 2023-08-30 (RMB/t)

3.1.4 White fused alumina 99%min F36 EXW China
In late August, the mainstream prices of Chinese white fused alumina 99%min F36 stayed at RMB4,720-4,920/t (USD645-673/t) Inc-VAT EXW D/P, up by RMB20/t (USD3/t) MoM. Given the firm production costs, though the sluggish Market demand, most producers lift their prices this month.

Prices of white fused alumina 99%min F36 EXW China from 2023-07-01 to 2023-08-30 (RMB/t)

3.2 Chinese Export Market

3.2.1 Brown fused alumina 95%min 1-3mm FOB China
By the end of August, the mainstream export prices of Chinese brown fused alumina 95%min 1-3mm stood at USD635-655/t Ex-VAT FOB China, down by USD5/t MoM. Owing to the weak market demand and the soft domestic prices, most exporters cut their prices.

Price trend of brown fused alumina 95%min 1-3mm FOB China from 2023-07-01 to 2023-08-30 (USD/t)

3.2.2 Brown fused alumina 95%min F36 FOB China
In late August, the mainstream export prices of Chinese brown fused alumina F36 stayed at USD690-710/t FOB China, down by USD10/t MoM. Owing to the weak market demand and the soft domestic prices, most exporters cut their prices.

Price trend of brown fused alumina 95%min F36 FOB China from 2023-07-01 to 2023-08-30 (USD/t)

3.2.3 White fused alumina 99%min 1-3mm FOB China
By the end of August, the export prices of Chinese white fused alumina 99%min 1-3mm increased to USD610-630/t FOB China, up by USD5/t MoM. Though the weak market demand, given the lifted domestic prices, most exporters lift their prices.

Price trend of white fused alumina 99%min 1-3mm FOB China from 2023-07-01 to 2023-08-30 (USD/t)

3.2.4 White fused alumina 99%min F36 FOB China

In late August, the mainstream export prices of Chinese white fused alumina 99%min F36 stayed at USD665-685/t FOB China, up by USD5/t MoM. Though the weak market demand, given the lifted domestic prices, most exporters lift their prices.

Price trend of white fused alumina 99%min F36 FOB China from 2023-07-01 to 2023-08-30 (USD/t)

3.3 International Market

3.3.1 Brown fused alumina 95%min 1-3mm EXW India
By the end of August, the mainstream prices of brown fused alumina 95%min 1-3mm in Indian Market stayed at INR72,000-73,000/t Inc-VAT EXW T/T 45 days, down by INR2,000/t from late last week. Considering the lower prices from Chinese competitors, most Indian producers cut their prices this month to maintain sales.

Price trend of brown fused alumina 95%min 1-3mm EXW India from 2023-07-01 to 2023-08-30 (INR/t)

3.3.2 Brown fused alumina 95%min F36 EXW India
By the end of August, the mainstream prices of brown fused alumina 95%min F36 in Indian Market stood at INR73,000-74,000/t Inc-VAT EXW T/T 45 days, down by INR2,000/t from late last week. Considering the lower prices from Chinese competitors, most Indian producers cut their prices this month to maintain sales.

Price trend of brown fused alumina 95%min F36 EXW India from 2023-07-01 to 2023-08-30 (INR/t)

3.3.3 Brown fused alumina 95%min 1-3mm in Warehouse Rotterdam
In late August, the mainstream prices of European brown fused alumina 95%min 1-3mm stood at EUR675-725/t T/T 30 days in Warehouses Rotterdam, down by EUR5/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 2023-07-01 to 2023-08-30 (EUR/t)

3.3.4 White fused alumina 99%min 1-3mm in Warehouse Rotterdam
By the end of August, the mainstream prices of white fused alumina 99%min 1-3mm hovered at EUR650-700/t in Warehouse Rotterdam, up EUR5/t MoM. Based on the increased prices from Chinese suppliers, most suppliers in European lift their prices this month.

Price trend of white fused alumina 95%min 1-3mm in warehouse Rotterdam from 2023-07-01 to 2023-08-30 (EUR/t)

4 Company news

4.1 Guangxi Pingguo resumed production of brown fused alumina
As a primary brown fused alumina producer in Guangxi, Pingguo Minerals Co., Ltd. resumed brown fused alumina production about a week ago, expecting to produce about 2,000t in August. "We suspended production in late May due to extremely sluggish market demand. Though the market demand stay sluggish, after we cut down on our inventory pressure, we resumed production about a week ago", a source from the company revealed, adding that they plan to produce about 2,000t this month. With a production capacity of 78,000tpy, they produced about 14,000t in 2022 and produced about 5,000t so far this year given the sluggish end market demand. They hold an inventory of nearly 2,000t at present.

4.2 Zhengzhou Pingyuan suspended white fused alumina production
Zhengzhou Pingyuan Abrasive Materials Co., Ltd., a white fused alumina producer in Henan, suspended their white fused alumina production since 1st August because of the sluggish market demand and high inventory volume. They produced about 1,000t last month. "Because of the slack sales and thin profit, we decided to halt production to control costs and prevent inventory accumulation. Given the firm production costs, we cannot lower our price further to compete for orders", an insider from the company disclosed, noting that they would not consider resuming until the demand turn better. They produced about 1,000t last month. With an annual production capacity of 30,000t, they produced about 19,000t last year, and due to the weak demand they only produced about 6,000t so far this year. They hold an inventory of nearly 5,200t at the moment.

4.3 Guizhou Hongsheng to resume production of brown fused alumina
As a new brown fused alumina producer in Guizhoui, Hongsheng Abrasive Materials Co., Ltd. plans to resume their brown fused alumina production within two weeks, expecting to produce about 1,000t in September. "We started production in March this year and suspended production in early June in order to upgrade our furnaces. We expect to finish construction in late August and resume production within two weeks", a source from the company stated, adding that they plan to produce about 1,000t next month. With a production capacity of 45,000tpy, they have two tilting furnaces of 7500kVA and plan to produce about 10,000t in 2023. They hold an inventory of nearly 600t at present.

4.4 Gongyi Yuhai suspended brown fused alumina production
As a major brown fused alumina producer in Henan, Gongyi Yuhai Fused alumina Co., Ltd. suspended the production of brown fused alumina about two weeks ago, with an output of nearly 900t in July. "We stopped our brown fused alumina production in early August due to thin profit and fierce competition. Our electricity costs increased by RMB85/t (USD12/t) but our buyers refused to accept higher prices because of the weak demand", a source from the company revealed, adding that they produced about 900t last month. With a production capacity of 20,000tpy, they produced about 9,000t in the year of 2022 and they produced about 4,800t so far this year in light of the slack sales. They keep an inventory of almost 800t at present.

4.5 Zhengzhou Yuzhou resumed white fused alumina production
As a primary white fused alumina producer from Henan, Zhengzhou Yuzhou New Materials Co., Ltd., resumed their white fused alumina production on 15th August, expecting to produce about 700t in August. "We suspended production in late June to avoid inventory accumulation due to the sluggish market demand. As market prices lifted since early August, we resumed production on 15th August after we received orders from our clients", a source from the company revealed, noting that they estimate to produce about 700t in this month. With a production capacity of 30,000tpy, they produced about 5,000t in the previous year and produced about 4,000t so far in the year of 2023. Currently they keep an inventory of almost 900t.

5 Producer Statistics

5.1 Chinese brown fused alumina producers' statistics

5.1.1 Chinese brown fused alumina producers' operating rate up by 0.31% MoM in August
In August 2023, China's operating rate of brown fused alumina producers was 23.19%, up by 0.31% MoM and down by 1.68% YoY.

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

In August 2023, the operation rate of producers in Henan was 17.24%, down by 1.27% MoM and up by 0.10% YoY; that in Guizhou was 19.03%, up by 1.25% MoM and down by 4.84% YoY; that in Shanxi was 35.45%, down by 0.87% MoM and up by 0.99% YoY; that in other area was 50.45%, up by 7.21% MoM and down by 5.75% YoY.

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

5.1.2 Chinese brown fused alumina producers' output up by 1.38% MoM in August
In August 2023, Chinese brown fused alumina producers' output was 65,900t, up by 1.38% MoM and down by 8.97% YoY.

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

In August 2023, the output in Henan was 24,400t, down by 6.87% MoM and down by 6.51% YoY; that in Guizhou was 15,300t, up by 6.99% MoM and down by 16.39% YoY; that in other area was 14,000t, up by 16.67% MoM and down by 17.64% YoY; that in Shanxi was 12,200t, down by 2.40% MoM and up by 10.90% YoY.

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

5.1.3 Chinese brown fused alumina producers' inventory down by 0.26% MoM in August
In August2023, Chinese brown fused alumina producers' inventory was 114,000t, down by 0.26% MoM and up by 17.64% YoY.

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

In August 2023, the brown fused alumina producers' inventory in Henan was 40,700t, down by 1.69% MoM and up by 21.85% YoY; that in Guizhou was 34,100t, down by 2.84% MoM and down by 2.29% YoY; that in Shanxi was 17,000t, unchanged MoM and down by 15% YoY; that in other area was 22,000t, up by 2.32% MoM, up by 29.41% YoY.

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

5.2 Chinese white fused alumina producers' statistics

5.2.1 Chinese white fused alumina producers' operating rate up by 0.55% MoM in August
In August 2023, Chinese white fused alumina producers' operating rate was 39.13%, up by 0.55% MoM and down by 4.96% YoY.

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

In August 2023, the operating rate of white fused alumina producers in Henan was 37.29%, down by 0.09% MoM and down by 11.54% YoY; that in Shandong was 41.84%, up by 1.51% MoM and up by 4.91% YoY; that in other area was 38.4%, unchanged MoM, down by 5.76% YoY.

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

5.2.2 Chinese white fused alumina producers' output up by 1.42% MoM in August
In August 2023, Chinese white fused alumina producers' output was 74,700t, up by 1.42% MoM and down by 10.53% YoY.

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

In August 2023, the white fused alumina producers' output in Henan was 40,900t, down by 0.24% MoM and down by 25.50% YoY; that in Shandong was 31,800t, up by 3.75% MoM and up by 20.00% YoY; that in other area was 2,000t, unchanged MoM and down by 5% YoY.

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

5.2.3 Chinese white fused alumina producers' inventory up by 3.09% MoM in August
In August 2023, Chinese white fused alumina producers' inventory was 66,600t, up by 3.09% MoM and up by 19.78% YoY.

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

In August 2023, the white fused alumina producers' inventory in Henan was 40,200t, up by 3.60% MoM and up by 12.92% YoY; that in Shandong was 24,800t, up by 2.47% MoM and up by 30.52% YoY; that in other area was 1,600t, unchanged MoM and up by 60.00% YoY.

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

6 Custom Statistics

6.1 China's brown fused alumina export volume declined 24.12% YoY in Jul 2023
In Jul 2023, China exported 33,923.06mt of brown fused alumina, 44,706.51mt in the same period last year and 34,224.21mt in the previous month, down 24.12% YoY and down 0.88% MoM.
In Jul 2023, China exported USD26,148,518.00 worth of brown fused alumina, USD80,766,400.00 in the same period last year and USD28,210,136.00 in the previous month, down 67.62% YoY and down 7.31% MoM. The average price was USD770.82/mt, USD1,806.59/mt in the same period last year and USD824.27/mt in the previous month.
In Jan-Jul 2023, China exported a total of 240,362.40mt of brown fused alumina, 279,578.26mt in the same period last year, down 14.03% 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 Jul 2023, the top three export destinations of brown fused alumina for China were United States, India and Japan.
China exported 4,630.40mt of brown fused alumina to United States, 13,151.71mt in the same period last year and 543.55mt in the previous month, down 64.79% YoY and up 751.88% MoM. The average price was USD586.85/mt, USD1,407.63/mt in the same period last year and USD723.65/mt in the previous month, down 58.31% YoY and down 18.92% MoM.
China exported 4,613.16mt of brown fused alumina to India, 3,857.79mt in the same period last year and 4,578.46mt in the previous month, up 19.58% YoY and up 0.76% MoM. The average price was USD796.21/mt, USD1,708.04/mt in the same period last year and USD928.99/mt in the previous month, down 53.40% YoY and down 14.32% MoM.
China exported 4,018.79mt of brown fused alumina to Japan, 7,689.37mt in the same period last year and 7,678.63mt in the previous month, down 47.74% YoY and down 47.66% MoM. The average price was USD850.07/mt, USD2,112.85/mt in the same period last year and USD798.05/mt in the previous month, down 59.77% YoY and up 6.52% 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

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.