In mid-August, China’s brown fused alumina (BFA) market remained largely stable in price, while both supply and demand stayed relatively weak.
As of August 12, tax-included ex-works prices for 95% BFA furnace lumps/grains were reported at:
- Guizhou: RMB 4,900–5,200/MT
- Henan: RMB 5,100–5,300/MT
- Shanxi: RMB 5,100–5,300/MT
- 95% BFA fines in Henan and Shanxi: RMB 4,900–5,200/MT
From August 10 to 12, quotations in the major producing regions remained unchanged for three consecutive trading days.
Stable Prices, but Trading Activity Remains Weak
Price stability does not necessarily mean stronger demand.
According to the latest production survey, China’s BFA operating rate reached 51.61%, up 0.81 percentage points from the previous period. However, weekly output fell to 19,173.2 MT, down 1,056.24 MT, or approximately 5.22%.
Capacity utilization also declined by 1.11 percentage points to 42.4%.
This divergence suggests that although slightly more producers resumed operations, some production lines were running at lower loads.
Rising Inventories Signal Demand Pressure
Inventories at Chinese BFA smelters increased to approximately 67,570 MT, up 500 MT, or 0.75%, from the previous period.
The key point is that inventories increased despite lower weekly production.
This indicates that shipments declined faster than supply. High-temperature maintenance, safety inspections, and weak production enthusiasm have reduced output, but the supply contraction has not yet been strong enough to bring inventories down.
Downstream Demand Remains Under Pressure
Low profitability in China’s steel industry has led to increased maintenance at some steel mills, affecting consumption of refractory raw materials.
The abrasives sector is also facing weak end-user orders and competition from relatively low-priced white fused alumina (WFA).
As of August 12, the average WFA market price remained unchanged from the previous trading day but was still noticeably below publicly quoted prices for 95% BFA.
Although BFA and WFA are not fully interchangeable, substitution is possible in certain refractory, sandblasting, and general grinding applications.
The current public price gap of approximately RMB 700–900/MT between the two materials is therefore limiting the upside potential for BFA prices.
What Does This Mean for BFA Buyers?
The current market can be summarized as:
Lower production + higher inventories + stable prices
BFA prices are currently being supported mainly by the cost of calcined bauxite and electricity, together with relatively low operating rates, rather than by a recovery in demand.
Unless producer inventories begin to decline consistently, supply reductions alone are unlikely to create strong upward price momentum.
For buyers planning BFA purchases, mid-August remains a relatively stable procurement window, but inventory levels, bauxite costs, electricity prices, and the price spread between BFA and WFA should be closely watched over the coming weeks.
Current Market Summary — As of August 14, 2026
| Market | Grade / Specification | Reference Price |
| Henan, China — Ex-works | First-grade BFA blocks | Approx. RMB 4,950–5,150/MT |
| Henan, China — Ex-works | FEPA F-grit BFA | Approx. RMB 5,500–6,500/MT |
| Guizhou, China — Ex-works | First-grade BFA blocks | Approx. RMB 5,200/MT |
| Major Chinese Production Areas | Tilt-furnace sized BFA, tax included | Approx. RMB 4,900–5,500/MT |
| Guizhou, China — Ex-works | FEPA F-grit BFA | Approx. RMB 5,500–6,500/MT |
| International Export Market | BFA grits | Approx. USD 1,250–1,700/MT |
| International Export Market | Al₂O₃ ≥95%, 1–3 mm | Approx. USD 950–1,100/MT |
