In 2022, the industrial layout of brown corundum industry: the production of brown corundum continues to decline

Brown corundum is one of the important raw materials for the production of abrasive, and is also widely used in grinding, stone, rubber, hydraulic injection, cutting and other industries. The following is the industrial layout of brown corundum industry in 2022.

Brown corundum is a kind of brown artificial corundum made from bauxite, carbon material and iron filings by melting and reducing in electric arc furnace. At the same time, brown corundum is a basic abrasive, because of its good grinding performance, cheap price, is widely used in refractory materials, abrades and other fields.

Analysis of the status quo of brown corundum industry

China is one of the world's brown corundum producing countries, and the overall domestic brown corundum production is greatly affected by export demand. According to the industrial layout data of the brown corundum industry, the production of brown corundum in 2021 is 1.05 million tons. From the perspective of 2022, the overall operating rate from March is in a continuous decline, mainly due to the slower recovery of downstream steel production, the overall demand for brown corundum prices are slowly falling, coupled with the continuous rise of bauxite and electricity costs, the enthusiasm of enterprises under the background of declining profits, and the overall production continues to decline.

Brown corundum downstream market analysis

At present, China's brown corundum industry is mainly used in abrasive abrades such as resins and refractory materials.

The iron and steel industry is a pillar industry in the development of our national economy. From 2015 to 2020, with the adequate supply of upstream raw materials and the growth of downstream demand, the output of China's steel industry has increased, and the overall output has declined in 2021 due to the impact of the epidemic. According to the data, in 2021, China's pig iron production was 868.57 million tons, down 2.3% year-on-year in 2020, crude steel production was 1,032.79 million tons, down 3% year-on-year, steel production was 1336.67 million tons, up 0.9% year-on-year.

Brown corundum industry prospect analysis

China's brown corundum production of one million tons, has become the world's brown corundum production country. From the point of view of raw materials, the main raw material of abrasive is bauxite, and bauxite as a non-renewable resource, the overall domestic reserves are low under the background of resource shortage, coupled with high-quality raw materials have a greater impact on the use of the overall upstream cost continues to rise; At the same time, the demand for electricity produced by brown corundum is higher, and the cost of electricity is rising simultaneously under the trend of rising domestic electricity bills. The industrial layout of the brown corundum industry pointed out that small and medium-sized enterprises can not get low electricity prices because of their small scale, and the cost pressure is more significant. There will be a lot of waste water and waste gas in the production process of brown corundum, which will cause serious environmental problems. Small and medium-sized enterprises often do not have enough funds or profits to invest in the treatment of waste water and gas.

In the long run, electricity bills gradually rise, all kinds of raw material prices hover high, "carbon neutral" and other policy guidance and other factors, the threshold of the abrasive abrade industry is getting higher and higher, high energy consumption, high pollution of backward production capacity will be phased out, large high-quality enterprises are expected to continue to increase market share.

Through the above analysis, in 2022, China's brown corundum production will continue to rise, downstream market demand will expand, and enterprises' requirements for product quality will be more stringent.