Mr. Meng Chunliang Shared his views on 2008 market of BFA

Mr. Meng Chunliang Shared his views on 2008 market of BFA

In 2007, it is focused on the forcast by Meng Chunliang, professional expert, on the price of brown fused alumina in China abrasive industry and his right forecast has shocked brown fused alumina industry. Mr. Meng has made contribution for the health development of abrasive industry because his high responsible attitude to the Chinese brown fused alumina industry's change. On July 12, 2008, invited by China abrasivesonline Henan Office, Meng Chunliang shared his views on the market of brown fused alumina and hoped it will be helpful for peers.
1. the price of brown fused alumina has been sharp up
From April, 2007, the price of brown fused alumina(from: http://www.industry-raw-materials.com/buy-_fused%2520alumina/) has been sharp up in China. The price of brown fused alumina (grit sand) has been more than 6000 RMB/ton from 2500 RMB/ton, (used in 24#、30#、36# vitrified grinding wheel) is 5800-5900 RMB/ton, (AP sand) is 6000 RMB/ton. It is suprising the price rised so fast.
From June, 2008 to now, Mr. Meng has often referred to the quality of Chinese brown fused alumina ans forecast on the market. As an important media in China abrasive industry, abrasivesonline has interviewed Mr. Meng to share his views on the status quo and developing trend of Chinese fused alumina industry.
2. two elements changing the price of brown fused alumna
Mr. Meng thought that there are two main elements to influence the marketing price of brown fused lauina: one is the state's control policy on two high and one resource industry that restricts the output of fused alumina. The other one is demand strongly. All of them cause the price to be up sharply.
1. the state has restricted the output of fused alumina by control policy
2007 China brown fused alumina industry producing status
According to the related materials, there were 147 suppliers of fused alumina in 2007 all over the country, (103 ones in Henan, 27 ones in Guizhou, 12 ones in Shanxi), and 272 smelting furnaces (149 ones in Henan, 72 ones in Guizhou, 22 ones in Shanxi), the total installing capacity is 921910KVA (Henan is 600300 KVA and Guizhou is 230350 KVA), the national fused alumina output is about 2,200,000 tons (Henan is 1,500,000 tons and Guizhou is 500,000 tons).
2007 market of China brown fused alumina
1. export: 2007 common fused alumina export 320 million dollars (including white fused alumina), accounting by export price 500 dollars per ton, it was 640,000 tons fused alumina to export in 2007.
2. domestic market:(from: http://www.industry-raw-materials.com/) domestic market of common fused alumina in 2007 is about 650,000 tons (the first grade brown fused alumina, including white fused alumina), in which refractory materials (fused alumina, as raw materials, used in metallurgy, iron and steel-making, cement, building materials, ceramics and other refractory materials) demands 400,000-450,000 tons and abrasives (resin grinding wheel, vitrified grinding wheel, abrasive cloth, paper and belt, sand-blasting and resistant abrasion materials) demands 200, 000 (the first grade brown fused alumina, Mr. Meng didn't made survey on bonded abrasives, such as grinding wheel). The price of brown fused alumina at the beginning of 2007 was 2200-3200 RMB/ton (F sand wass 2200-2400 RMB/ton, P sand was 2400-2600 RMB/ton, while, until the end of last year, the price of F sand has risen to 2800-3200 RMB/ton, P sand is 3800-4000 RMB/ton).
From China fused alumina' production, market and price, the control on fused alumina smelting in 2007 has been primary success. The output has been fallen, energy-consumption reduced, as well as emission, all of them cause the price of fused alumina to be more and more. If accounting output 2200000 tons, electricity consume 6160 million
The status of fused alumina at the first half year of 2008
Zhao Jiancai, mayor of Zhengzhou, has commanded to close more than 20 small power factories, 2,022,000 kilowatt-hours. With Beijing Olympic Games approaching, Mr. Meng estimated the output of fused alumina will continue to reduce in August, September, October It is forecasted that the output of brown fused alumina will be 1,200,000 tons in 2008.
2. the strong demand for fused alumina accuses price to be rising
Steel
The 2007 output of steel in China has been 469 million tons, providing large space for our national refractory materials industry.
Refractory materials
It demands higher, more kinds, and better performance. Its developing trend is the quality-advancing, energy-saving, producing process-environmetal protecting, utilizing process-innocuity. In order to meet these requirements and adapted by smelting steel and iron, it is evitably to increase the quantity of fused alumina that is green raw materials of refractory materials. (from: http://www.industry-raw-materials.com/)
1. the main factors influencing the market of fused alumina in this and next year
compared to the last year, there are more demand in abrasive and refractory materials industries, in addition, Sichuan Wenchuan Earthquake and snow disaster in South region,
The price of fused alumina block has increased to 4500 RMB/ton from 2200-2300 RMB/ton. When the price of fused alumina will be stable? Mr. Meng shared his views as following:
1. resource reform tax scheme will be took into effective. More natural resource will be brought into resource tax range, which will accelerate the comprehensive utilization of resource and reduce waste. The rate of this tax has been increased from 10 Yuan/ton to 30 Yuan/ton, which directly led enterprises' producing cost to increase.
Excise is took into effective, to adjust industrial structure and accelerate sustainable development, the state will collect excise on "two high products".