Page 42 - Mines and Minerals Reporter eMagazine - Volume October 2021

NEWS DESK

and zinc markets were in surplus in H1 CY2021, the copper Mr. Parmod Sagar, Chairman IRMA, said “Globally, the key
market remained in balance during the same period. However, producer of magnesite is Liaoning Province, China. Production
the increasing curbs on power generation in China has started was already under stress due to stricter environmental control
impacting aluminium production and the impact is likely to and recently the widespread power cuts in Liaoning province
intensify over the coming months leading into the winter sea- has seriously aggravated the problem. Fused Magnesite which
son. Consequently, the aluminium market will remain largely is an essential ingredient for manufacture of magnesia carbon
balanced in CY2021, thus supporting prices. However, down- bricks has seen significant rise in prices and continues to in-
side risks on prices from such high levels at present cannot be crease day by day. Even after paying higher price, there is no
ruled out over the short term, especially if global economy guarantee of availability of raw materials. Added to that is the
shows signs of any weakness. current mayhem in logistics supply chain.”

In case of copper, surging power prices are expected to curb Mr. Sagar added that in 2017 Indian steel plants were at the
supply, while the inventories available on the London Metal point of closure due to non-availability of magnesite, while he
Exchange (LME) are also at the lowest levels in recent times. pointed out that the refractory makers who have long term
However, with an expected slowdown in imports in China, supply contract with steel plants are facing utmost difficulty
ICRA estimates a contraction in apparent Chinese consump- in maintaining supply commitments due to this sudden price
tion in H2 CY2021. Consequently, the world copper market volatility. A cursory discussion with some prominent refracto-
is expected to remain in a marginal surplus for the full year. ry makers of the country revealed the fact that White Fused
On the other hand, while global zinc consumption is likely to Alumina price is also witnessing steady climb due to power
remain healthy, production cut amid energy crisis is likely to outage in China and supply woes in other parts of the world.
keep the market tight in the near term.
Data from benchmark Asian Metals indices and others sourc-
es reveal that China origin 97% Fused Magnesite price has in-
Indian Refractory Makers hit creased from USD 610 to USD 1015 in last fortnight. During
the same period, price of China origin 99% White Fused Alu-
by Chinese Magnesite supply mina increased from USD 780 to USD 1000.

shortage and price volatility

n its recently concluded meeting on 1st October 2021 at Kol-
kata, Indian Refractory Makers Association Board of Direc-
Itors expressed deep concern at the on-going acute power
outages in China affecting the production and supply of re-
fractory raw materials. At present Indian refractory industry
has an annual turnover of Rs 10,000 crores, while 75% of pro-
duction goes to the steel industry. However, there is dearth
of good refractory raw material, especially bauxite and mag-
nesite, in India for which the domestic refractory industry is
dependent on imports, especially from China.
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