2021 1 quarter of China's refractories industry running situation
One factor is a slight increase in output.
According to statistics from the China Refractory Industry Association, national refractory production reached 6.344 million tons, showing a 1.09% increase. Among these, compact-shaped refractory products accounted for 3.5025 million tons, marking a 1.07% increase. Heat insulation refractory products amounted to 206,400 tons, with a growth rate of 4.29%. Amorphous refractory products reached 2,635,100 tons, experiencing a modest increase of 0.88%.
Another factor is the continued recovery of industry confidence.
Based on data from China's Durable Window Network, the bulk raw material price index was 181.91 in April 2021, representing a 1.5% monthly increase and a 10.46% year-on-year increase. The prices of certain refractory products have also shown significant year-on-year increases. Some advantageous enterprises have secured contracts and witnessed full production tasks, driven by relatively strong demand from downstream industries.
Additionally, the price of refractory raw materials has remained relatively stable or has increased.
Tracking statistics from the China Refractory Industry Association and Refractory Window Network reveal that in the first quarter, the prices of Shanxi bauxite clinker remained high and stable. The factory price (excluding tax) of Xiaoyi 85 iron shaft kiln bauxite clinker was 1950 yuan/ton. The domestic brown corundum market has also experienced some price increases, with the mainstream factory price (including tax) ranging from 4600 to 4700 yuan/ton. The price of white corundum in the Henan region has remained stable, while the price of sintered corundum has been relatively weak.
In March, the factory price (including tax) of ordinary fused magnesia (MgO≥95.5%, block) in Liaoning was 3000 yuan/ton. The mainstream price of heavily burned magnesia (MgO≥90%, block) in Liaoning was 1550 yuan/ton, medium-grade magnesia (MgO≥94.5%, block) was 2700 yuan/ton, and high-purity magnesia (MgO≥96.5%, block) was priced at 3300 yuan/ton. In April, the price of heavy-burned magnesia in Liaoning increased by 50 to 100 yuan compared to the end of the previous month. The price of medium-grade magnesia increased by 100 yuan, and the price of high-purity magnesia increased by about 100 yuan.
Fourth, the price of refractory products is relatively stable or rising.
According to the tracking statistics of the China Refractory Industry Association and the window network of resistant materials, in the first quarter, the factory price of magnesia carbon brick (Mt-14A) including tax is 5500 yuan/ton; The mainstream factory price of ordinary magnesia-calcium brick including tax is 3500 yuan/ton; Directly combined magnesia-chrome brick factory price including tax 4300 yuan/ton; Henan high aluminum brick (LZ-75) factory price including tax 3500 yuan/ton. The overall price of refractory products in the first quarter increased significantly compared to the previous year.
Fifth, the import and export of main refractory products increased year-on-year.
According to customs statistics, from January to March, the total import and export trade of refractory raw materials in the country was 937 million US dollars, an increase of 16.46% over the same period last year. The total export of refractory raw materials in the country was 1.5901 million tons, representing a 10.40% increase. Among them, the export volume of refractory raw materials was 1.1687 million tons, representing a 7.76% increase. The export volume of refractory products was 421,400 tons, showing an 18.46% increase. In terms of export prices, the export volume of sintered magnesia and light-burned magnesia decreased by 1.76% and 24.42%, respectively, but the export price was relatively stable. The export volume of fireclay, fused magnesia, and white corundum has increased significantly, while the average export price has slightly increased. The export volume of alkaline products increased by 25.48%, while the average export price decreased by 7.63%. The export volume of aluminum-silicon products increased by 7.01% compared to the previous year, and the average export price increased by 8.67%. Additionally, the export volume of other refractory products increased by 12.90% year-on-year, with the average export price increasing by 10.59%.
Sixth, the transmission effect of rising raw material prices began to appear.
In the first quarter, due to the rise in raw material prices from the fourth quarter of last year, the upward pressure on the cost of refractory products has risen significantly, and the factory price of refractory products in the first quarter has been raised to a certain extent, and the rising price of some products has been accepted by users in the downstream industry, and the transmission effect of rising raw material prices has begun to appear. However, by the end of the quarter, the prices of certain refractory products were still under significant cost pressure, and the transmission effect had not yet been realized.
