2014 Sic Market Situation Recap

In 2014, the overall Sic market has been weak. Supply exceeds demand in first degree Sic market. This year the price of first degree Sic has declined twice. While the demand of secondary and tertiary Sic exceeds supply. In the first quarter of 2014, the price appreciated slightly.

The reasons for decline in first degree Sic are as follow:

1. Small market demand led to overstock;
2. Downstream customers cannot pay the money in time, which resulted in problems in companies' capital turnover.
3. With the enhancement of China's environmental protection policies, the high cost of environmental protection equipment has added to the pressure.

Currently, first degree Sic overall stock is large. Over half of Sic manufacturers in Gansu Province have stopped production. Secondary and tertiary Sic are not easy to be produced, and the metallurgical industry has an increasing demand for them, so the supply is insufficient. This year, Sic price is stable.

According to analysis, the Sic market trend in 2015 may continue to experience a sluggish market. In terms of companies, large Sic manufacturers will be more outstanding in capacity and sales. The need for SMEs to transform and upgrade is urgent, or they may be eliminated from the market. Currently, some Sic manufacturers have reduced the price to cost price. After all, Sic market trend in 2015 will be weak but stable.

Author: Liwei Chu
Copyright: iAbrasive.com--Abrasives & Diamond Tools Market