Influenced by environmental governance, market prices of magnesium sand, aluminum-vanadium and other materials have risen sharply in 2017. From August, with the restriction of mining magnesit, the supply of magnesia has been more and more difficult. The price of electric molten magnesium sand has increased more than 200%, and the price of sintered magnesite sand has increased more than 330% year on year.
Faced with the difficulty of the shortage of materials and rising costs, TPCO Supply Department focused on ensuring supply, reducing cost targets, relied on the three party cooperation of Specialty Steel Corporation, suppliers and itself, constantly improved the procurement mode and strategy, reduced the cost of procurement while ensuring the timely supply of refractory materials. Total cost savings had reached to RMB 4.09 million yuan from January to October 2017.