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Due to the rise in raw material prices, a number of abrasives, superhard material enterprises announced price increases

Post Date: 24 Mar 2022    Viewed: 837

CAA-Recently by the impact of rising raw material prices, a number of abrasives, superhard material companies announced price increases, involving products mainly green silicon carbide(GC), black silicon carbide(BC), single crystal diamond, superhard tools, etc.. 

  • Yuzhou Xinrun Mould Abrasive LLC has increased the price of some diamond products since February 26th, the increase range is 0.04-0.05 RMB.

  • Linying Diacutt New Material LLC announced on 17th March that all previous quotations are invalid, please ask for quotations before placing your order and the quotation will be based on the same day.

  • Since March 21, Xinjiang Xinnengtianyuan Silicon Carbide LLC has set the ex-factory price of GC at RMB13,500/ton for high quality products; and RMB12,000/ton for qualified products of GC

  • Shandong Jinmeng New Material LLC from March 22, the original price of GC on the basis of an increase of 3,000 RMB / ton, BC on the basis of the original price from 500 RMB / ton.

CAA research results show that The raw and auxiliary materials necessary for synthetic diamond, such as pyrophyllite and nickel, the price of the former has risen by 45%, and the price of the latter has soared by 100,000 yuan a day. At the same time, under the influence of environmental protection, energy consumption "double control" and other factors, silicon carbide main production raw materials under the influence of prices have risen to varying degrees, and manufacturing costs have continued to rise. Raw material prices rose beyond the industry's expectations, some companies operating under greater pressure, only through price increases to transfer.

According to industry insiders, small and medium-sized enterprises (SMEs), which capture the low-end market with low prices, are more affected. Large enterprises usually pre-order their raw materials months in advance, which largely reduces the impact of price increases.Coupled with their relatively high level of technology and value added products, they are more resilient to the risk of price increases. 

Due to the conduction of raw material prices, the atmosphere of price increases in the market can already be clearly felt. As the prices of raw materials and abrasives continue to climb, this wave will spread downstream along the industry chain, causing a certain impact on product enterprises and end users. 

Under the influence of multiple factors such as the complicated and volatile international economic situation, repeated epidemics and soaring commodity prices, abrasives enterprises may continue to bear higher production costs and even face the possibility of being eliminated from the market.


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