Australia's Abrasives Price Soars 37% to $274 per Ton

Australia Abrasives Export Price in November 2022

In November 2022, the abrasives price amounted to $274 per ton (FOB, Australia), increasing by 37% against the previous month. Over the period under review, the export price recorded a temperate expansion. The growth pace was the most rapid in September 2022 an increase of 158% month-to-month. As a result, the export price reached the peak level of $445 per ton. From October 2022 to November 2022, the the average export prices remained at a lower figure.

Prices varied noticeably by the country of destination: the country with the highest price was South Korea ($431 per ton), while the average price for exports to Italy ($195 per ton) was amongst the lowest.

From January 2022 to November 2022, the most notable rate of growth in terms of prices was recorded for supplies to the United Arab Emirates (+4.1%), while the prices for the other major destinations experienced more modest paces of growth.

Australia Abrasives Exports

In November 2022, overseas shipments of abrasives (natural) increased by 82% to 51K tons, rising for the second consecutive month after two months of decline. In general, exports showed a prominent increase. The growth pace was the most rapid in March 2022 when exports increased by 2,245% against the previous month. As a result, the exports reached the peak of 79K tons. From April 2022 to November 2022, the growth of the exports failed to regain momentum.

In value terms, abrasives exports soared to $14M (IndexBox estimates) in November 2022. Over the period under review, exports showed a prominent increase. The pace of growth was the most pronounced in March 2022 with an increase of 1,428% against the previous month. As a result, the exports attained the peak of $18M. From April 2022 to November 2022, the growth of the exports remained at a somewhat lower figure.

Australia Abrasives Exports by Country

Saudi Arabia (22K tons), Italy (12K tons) and the Netherlands (9.1K tons) were the main destinations of abrasives exports from Australia, together comprising 85% of total exports.

From January 2022 to November 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Italy (with a CAGR of +69.5%), while the other leaders experienced more modest paces of growth.

In value terms, Saudi Arabia ($7.3M) emerged as the key foreign market for abrasives exports from Australia, comprising 52% of total exports. The second position in the ranking was held by Italy ($2.3M), with a 17% share of total exports. It was followed by the Netherlands, with a 13% share.

From January 2022 to November 2022, the average monthly growth rate of value to Saudi Arabia stood at +5.8%. Exports to the other major destinations recorded the following average monthly rates of exports growth: Italy (+63.3% per month) and the Netherlands (+41.8% per month).

What Drives Abrasives Prices in Australia?

The cost of abrasives in Australia is driven by several factors, including the availability and cost of raw materials, the type of product being used, the demand for the product, and the overall state of the economy.

Natural and synthetic materials are the most common types of raw materials used to make abrasives, with natural materials like sand, aluminum oxide, and silicon carbide being the most popular and affordable. Synthetic materials such as corundum, silicon nitride, and boron nitride are more expensive but are sometimes needed for specialized applications.

The type of abrasive product can also play a role in its cost. Coated abrasives, like sandpaper sheets and discs, usually have a lower price than bonded abrasives, which are often used for cutting and grinding operations, and super abrasives, which are more expensive due to their superior performance and durability. Additionally, the size and shape of the abrasive product can affect its cost, as larger and more complex parts are usually more expensive.

Demand for abrasives in Australia is also a factor that affects prices. The supply and demand curve applies here as well – when demand is high and supply is low, prices tend to rise, while when demand is low and supply is high, prices tend to fall.

Finally, the overall state of the economy also plays a role in abrasives pricing. When the economy is strong, people are more likely to purchase abrasives, resulting in higher prices. When the economy is weak, people are less likely to purchase, causing prices to fall.

Source: IndexBox Market Intelligence Platform