September 30th, 2025
CCM Market Insight (September 2025)
We've got from local market that all the kiln upgrade measures that had been in the discussion stage previously will become a reality in October.
The major enterprises believe that this is something that for sure will be happening in October.
Some factories are even considering stockpiling some semi-finished products for further sales. Because of this, the rental prices of some warehouses in the surroundings of Dashaqiao have begun to rise.
During the visit we found many warehouses that had stayed unoccupied have now been rented out.
Product price will definitely increase but it is still difficult to predict exactly how much it will be.
Except for the fluctuations in raw materials price, there is another variable at play which is that there is no way for us to know exactly how many people are stocking up and how many stocks they have.
As we understand, some factories in Haicheng area that initially implemented the kiln upgrade project had adopted rotary kilns which are mainly for the calcination of MgO purity of 90% or higher.
This type of kiln is likely to become the main production form in the future, thus, the supply of CCM 90% will be relatively sufficient.
However, for the 85% purity CCM, it is not cost-effective to be calcined in a rotary kiln due to its low added value. Previously, the traditional vertical kilns were used for its production.
If in October all these vertical kilns are required to be tore down and on the other hand the factories may not be inclined to use the newly-built rotary kilns to calcine CCM 85%/87% considering the economic benefits, then CCM 85%/87% supply might face a more serious shortage.
