Asian Metal visits Xiangyang Jinbo, Zhengzhou Kaisheng, Jiaozuo Jiaxing Science &Technology and other fused alumina companies in Henan

From December 14 to 16, Iris He, fused alumina market analyst of Asian Metal, visited Xiangyang Jinbo Abrasive Co., Ltd., Xiangyang Longshen Abrasive Co., Ltd., Xiangyang Xinxing Fused Alumina Co., Ltd., Zhengzhou Yuli Industrial Co., Ltd., Kaisheng Abrasives and Refractories Co., Ltd., Jiaozuo Jiaxing Science &Technology Co., Ltd., Zhengzhou Dayu Abrasive Co., Ltd. and Henan Futong Imp. & Exp Trade Co., Ltd. and exchanged opinions with officials from those companies on current situation of white and fused alumina markets.

Xiangyang Jinbo Abrasive Co., Ltd.

In the morning of December 14, Iris visited Xiangyang Jinbo Abrasive Co., Ltd. and was given a warm welcome by Miao Yalei, the general manager of the company. Iris and Mr. Miao exchanged opinions on the rise in raw material prices and influence of environmental protection inspection on production and future market trend. Mr. Miao noted that alumina prices which have been rising since September still show an upward trend at the moment, exerting a great impact on current production, sales as well as exports. In addition, accompanied by Mr. Miao, Iris visited the plant and listened to the introduction to the progress of the new white fused alumina project with an annual capacity of 60,000t.

Zhengzhou Yuli Industrial Co., Ltd.

In the afternoon of December 14, Iris visited Zhengzhou Yuli Industrial Co., Ltd. and was given a warm welcome by Liu Chao, vice general manager of the company. Iris and Mr. Liu exchanged views on the rise in white fused alumina prices and the market outlook. Mr. Miao mentioned that producers suffered a lot with alumina prices rising sharply and obtained little profits despite higher prices as downstream consumers were unwilling to make purchases. In addition, small plants suspended production as a result of the environmental protection inspection and they planned to expand production capacity for white fused alumina due to increasing orders.

Xiangyang Longshen Abrasive Co., Ltd.

Iris visited Xiangyang Longshen Abrasive Co., Ltd. afterwards and was given a warm welcome by Shi Jinzhu, general manager of the company. Accompanied by Mr. Shi, Iris visited the plant. Mr. Shi indicated that there was still room for white fused alumina prices to rise with alumina prices moving up continuously. What’s more, Mr. Shi noted that they can’t meet customers’ demand and thus plan to add two smelting furnaces to expand capacity next year.

Xiangyang Xinxing Fused Alumina Co., Ltd.

Iris was given a warm reception when she visited Xiangyang Xinxing Fused Alumina Co., Ltd. Iris and Zhang Erfeng, general manager of the company, exchanged views on current white fused alumina market situation and market trend in near future. Mr. Zhang claimed that raw material prices moved up due to policy factors and the government would rectify enterprises which produce raw materials in the coming two years for environmental protection and safety production, which will greatly influence the market direction.

Defeng Kaisheng Abrasives and Refractories Co., Ltd.

In the afternoon of December 15, Iris visited Defeng Kaisheng Abrasives and Refractories Co., Ltd. and was given a warm welcome by Xie Jun, general manager of the company. Iris and Mr. Xie exchanged views current market supply of brown fused alumina and future price trend. Mr. Xie noted that market supply in Henan would be quite tight in the near future due to the production suspension, inflating prices for the material. The brown fused alumina industry still sees overcapacity and some small enterprises which fail to meet environmental protection standards will be shut down as a result of this round of environmental protection inspection. In addition, prices for brown fused alumina are still likely to go up in the future as a consequence of the rise in raw material prices.

Jiaozuo Jiaxing Science &Technology Co., Ltd.

In the afternoon of December 17, Iris visited Jiaozuo Jiaxing Science &Technology Co., Ltd. and was given a warm welcome by Kang Yifan, sales director of the company. Accompanied by Mr. Kang, Iris visited the workshop and production lines. Iris and Mr. Kang exchanged views on current brown fused alumina market situation. Mr. Kang noted that the environmental protection inspection will have a great impact on the market supply in the short run, but will help slash excessive capacity in the long run. Kang believed that low-price competition is bound to disrupt the market, hoping for standardized development of the market. In addition, Mr. Kang disclosed that the Phase III of fused alumina project has been completed and is waiting for commissioning.

In addition, Iris also visited Huang Daowu, general manager of Henan Futong Imp. & Exp. Trade Co., Ltd., and Zhang Jia, general manager of Zhengzhou Dayu Abrasive Co., Ltd.