Internal problems outside the storm breakout price corundum
[Author: 2008-09-04 Click: 83]

With the continuous improvement process and technology innovation, corundum products and gradually expand the scope of application, in addition to the traditional refractories, abrasives, ceramics and other industries, in cosmetics, chemical industry applications have gradually increased, the production of aluminum corundum bauxite and mineral resources will decline every year, limited capacity makes the already strong corundum high prices continue to climb.

Factors apart from the ore, the energy issue is also key.  OPEC in international crude oil prices fell slightly Tuesday, but Wednesday followed the Asian fuel oil prices rebounded.  Now the weather has turned warm, people frequently travel, tourism and transport hibernation is over, the oil price over a period of time I am afraid it is very difficult regression.  Corundum production costs and transportation costs are still growing.

This year is the new labor law after the enactment of the first year of implementation.  Coupled with recent prices continued to rise, the cost of enterprises employing additional business expenses. Production declining corporate profits also allows businesses to rely on price increases will inevitably break out.

On the export side, the yuan over the past two years of constant production rate appreciation also to bring pressure.  Prediction to the end of this year, the appreciation of the renminbi will reach one U.S. dollar of about 6.9 yuan, corundum exports because foreign exchange profit of the enterprise was gradually compressed.

Ore resources, coupled with declining production, transportation costs increase year after year, corundum rising prices are also reasonable


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