China dominates world magnesia supply, accounting for 70% of world magnesi production capacity and 60% of world production. Chinese magnesia production levels have been increasing since 2000 to feed the domestic demand for refractories for the growing steel industry in addition o support the growing exports of magnesia carbon bricks.

The market for calcined bauxite and fused alumina carries on in a state of limbo at the beginning of the fourth quarter due to a continued lack of clarity on the extent of the supply issues in China.

Participants are facing hard questions about issues of continuity of supply from China amid a slowdown in demand from consumers in Europe and other areas.

Limited availability remains a problem that is ever present as much as it is proving difficult to quantify. This is resulting in wider spreads on some market prices – particularly for bauxite – while other grades remain firm or adjust on slow trading.

Fastmarkets IM assessed the price of calcined bauxite 85% at $400-435 per tonne fob China on Thursday October 18, compared with $420-435 per tonne previously.

Meanwhile, the price of calcined bauxite 86% stood at $435-450 per tonne fob China on Thursday, adjusting from $435-445 per tonne earlier.

Finally, the price of calcined bauxite 87% remained unchanged at $450-480 per tonne fob China, and the price of calcined bauxite 88% also held at $490-500 per tonne fob China.

Most data points collected point to a widening of the spreads, as in the case of the 85% and 86% price, and are testimony to the lack of clarity the industry is seeing at present.

«You hear numbers that are all over the place right now,» a consumer commented.

Krosaki AMR Refractarios S.A.u., filial del Grupo Japonés Krosaki Harima Corporation, ha anunciado la compra del productor de refractarios Refractaria S.A. localizado en Siero Asturias, España en el dia 30 de Noviembre, 2018.
Refractaria S.A. es un productor de referencia de productos aluminosos conformados y no conformados, dedicados a la industria del acero, cemento, fundición, aluminio, cerámica y petroquímica.

Esta adquisición se encuadra a la perfección con la estrategia de crecimiento de la compañía y le permitirá ofrecer soluciones refractarias completas para toda su cartera de clientes.

Ambas compañías suministrarán soluciones refractarias completas en más de 60 países.

Contracts for the fourth quarter and for 2019 will be subject to a “double digit” percentage price rise.
French alumina producer Alteo will raise prices for its entire portfolio of products from October 1 because of increasing production costs amid unrelenting demand for material from consuming markets.

The company confirmed to Industrial Minerals it will increase its prices «wherever possible» depending on contractual arrangements. This will include contracts for the fourth quarter of this year and for 2019.

Alteo cited a series of cost factors rising across the board, including bauxite, caustic soda, energy and freight, as well as volatility in smelter grade alumina (SGA) prices.

Energy costs alone have increased by around 50% against September last year, the company said, while caustic soda prices have risen 40% over the same time.

At the same time, demand from refractories producers has been consistently high throughout this year.

«Everyone is sold out at the moment and demand is higher than what we can offer,» an Alteo executive said. «Several customers are asking for more volumes than contractually arranged. Additional tonnages will be sold at a higher price.»

Industrial Minerals heard that the increase would be «double-digit» in percentage terms.

Alteo’s announcement follows warning from alumina suppliers earlier this summer on expected price rises for 2019 because of high consumer demand and insufficient output.

Unrelenting tightness

The calcined alumina market has been experiencing unrelenting tightness throughout 2018 because of a rebound in demand from the refractories sector as well as lower output in China.

Prices assessed by Industrial Minerals for 2018 contracts rose about 10% on average against 2017 contracts.

Contract prices for bulk unground calcined alumina, 98.5-99.5% Al2O3, stood at $730-780 per tonne ex-works United States/Europe for 2018 contracts, according to Industrial Minerals’ assessment late last month. This level has been in place since the start of the year.

The price of bulk ground calcined alumina, 98.5-99.5% Al2O3, was $830-930 per tonne ex-works US/Europe in 2018 contracts while the price of bulk calcined alumina, ground and unground, min. 99.5% Al2O3, min. 0.25% soda content was $830-930 per tonne ex-works US/Europe.