White corundum price rises again
White corundum production is a highly energy-consuming and resource-consuming industry. In recent years, various white corundum manufacturers have been affected by low market demand in domestic and international markets. That results in consistently low operating rates. However, with the fluctuation of alumina prices, the price of white corundum rises accordingly.
The direct raw material for white corundum is metallurgical-grade aluminum oxide powder. And the raw material for aluminum oxide is bauxite. Bauxite ore is a non-renewable resource. The main production bases in China are in Henan, Shanxi, Guizhou, and other areas. With the efforts of domestic environmental protection and the promotion of reclamation, the supply of domestic bauxite has been declining year by year. In the first quarter of 2024, the production of domestic bauxite in China decreased by 19% year-on-year, and the production of alumina plants also decreased due to an insufficient supply of raw materials.
Raw material supply tight
The tight supply of domestic bauxite has led to an increase in the import quantity of alumina. In March 2024, the import volume of bauxite increased by 5.2% month on month and decreased by 1.04% year-on-year. The import volume of alumina increased by 4% month on month and increased by 334.4% year-on-year. The main import sources of bauxite are Guinea and Australia, while the main import sources of alumina are Australia and Indonesia. Since April, the Kwinana alumina plant in western Australia has planned to reduce production until close up gradually. The import price of Australian alumina is getting higher this year. However, the quality of bauxite ore from Guinea is not high. For the production of fused alumina, also known as white alumina, the price of high-quality aluminum oxide powder has been pushed up.
All of this, the price increase of white corundum this time is not caused by any single factor. Still, it is linked to the supply and demand of bauxite, electrolytic aluminum, and alumina markets. Regarding the real-time price of white corundum, please feel free to contact the sales personnel of Haixu Abrasive at any time.
