Andalusite buyers seek flexibility for 2021 supply on uncertain downstream demand

摘要

Andalusite buyers are seeking flexibility for 2021 supply volumes due to uncertain conditions in refractories' end market, as negotiations for new contracts proceed slowly. The andalusite market has suffered a year of reduced output in major producing origins, but this has not been sufficient to create a perception of tightness, since consumption has also shrunk due to the Covid-19 pandemic's effect on industrial productions. This has affected both sides of the market and has resulted in a new level playing field for next year’s supply discussions. Total supply of andalusite to market for 2020 is expected to be approximately 35,000-40,000 tonnes short compared to previous years, due to a series of mine closures that affected South Africa, Peru and, to a smaller extent, France.