Review of the Operation of the Bulk Refractory Raw Materials Market in the First Half of 2025 and Outlook for the Second Half
Jul 30,2025
In the first half of 2025, influenced by weak market demand and cost support, the bulk raw materials market experienced both increases and decreases, with overall market conditions remaining unfavorable. Among these, the corundum market first declined from high levels and then underwent low-level fluctuations and adjustments; electrofused magnesia was supported by costs, leading to price increases, but weak demand caused prices to decline again; sintered magnesia remained at low levels; silicon carbide and flake graphite faced intense competition, resulting in repeated price declines; bauxite was supported by costs and remained stable.
Details are as follows:
[Corundum] High-level decline, low-level fluctuations
Under the influence of industrial alumina, white corundum was in a downtrend before April and rebounded afterward; sintered corundum fell from high levels before April and stabilized after April.
Brown corundum, supported by the cost of raw material calcined bauxite and influenced by the decline in white corundum prices (which fell below brown corundum prices again after March), saw a limited decline in the market.
[Bauxite] Weak demand, supported by ore, market remains stable
In the Shanxi region, bauxite mining operations have been intermittent. Overall, low-grade ore is relatively abundant, while medium- and high-grade ore is in short supply, though prices remain at high levels. As a result, despite weak demand for bauxite, the market has not experienced significant fluctuations, maintaining a stable trend in the first half of the year with a slight increase compared to the same period last year.
[Magnesium Oxide] Electrofused magnesium oxide prices rose then fell, while sintered magnesium oxide prices declined slightly before stabilizing at a weak level
Electrofused magnesium oxide: Under the dual pressures of rising electricity prices and tightening supply of magnesite ore, electrofused magnesium oxide prices rose from January to March. Weak demand and users' reluctance to accept higher prices led to a slight decline, with prices stabilizing at a weak level.
Sintered magnesia: Fuel costs are trending downward, which has alleviated some of the cost pressure on manufacturers caused by the sustained rise in ore prices. Sintered magnesia users are purchasing according to their needs, with insufficient demand and excess supply. In the current market downturn, prices for sintered magnesia continue to decline slightly.
[Flake graphite] Weak market stabilizes
After a price decline in mid-January, flake graphite has maintained a weak and stable trend due to sluggish demand from spherical graphite and refractory materials. Large-scale enterprises with cost advantages continue production; small and medium-sized enterprises have not resumed production to avoid loss risks. Notably, China's flake graphite exports have doubled, and imports have increased, but China has reversed its position to become a net exporter of flake graphite.
[Silicon Carbide] First Up, Then Down
Silicon carbide prices rose slightly in February due to a 0.04 yuan/kWh increase in electricity prices in Gansu Province, coupled with tight supplies and rising prices of petroleum coke. Subsequently, as domestic and international demand cooled, production capacity utilization rates increased, leading to oversupply and insufficient raw material cost support, resulting in continued price declines. By June, silicon carbide prices were on par with the beginning of the year or slightly lower.
Looking ahead to the second half of the year, supply surplus, weak demand growth, and intense competition are expected to persist. The corundum market, driven by bauxite and alumina, may experience temporary fluctuations, but the industry's concentration will further increase; large bauxite companies may break through, potentially altering the market landscape; flake graphite is likely to maintain its stable weak market trend; and the supply-demand imbalance in the magnesia and silicon carbide markets remains challenging to resolve. High-energy-consuming products may explore the application of green electricity. In summary, the market outlook for bulk refractory raw materials in the second half of the year is not optimistic.