Cause Analysis on Rise in Silicon Carbide Prices in November

The market prices of domestic silicon carbide were still rising in November, but the rises were around 100 Yuan/ton, without sharp rise. At present, the prices including tax of domestic 98 black silicon carbide were about 5100 Yuan/ton, and 97 black silicon carbide about 5000 Yuan/ton. We will make brief cause analysis on the rise in silicon carbide prices:

A, Raw materials: The production of 1 ton of silicon carbide needs 1.4 tons of anthracite. In November, anthracite prices rose nearly 500 Yuan/ton than early time. The cost prices of silicon carbide rose about 600 Yuan/ton, but most production enterprises bear the cost, and silicon carbide prices only increased around 200 Yuan/ton.

B, The freight: On August 30, Ministry of Transport issued new standards about size and weight of heavy trucks, which strictly limited truck weight that couldn't go more than 49 tons. On September 21, the new standards were carried out. After the implementation of new standards, the national freight rose generally, so the downstream procurement costs were generally increased.

C, Electricity prices: because silicon carbide is an energy-intensive company, many manufacturers signed an agreement directly with power plants so that the electricity prices are lower about 3 points per kilowatt-hour than online electricity prices. But at present, the prices of coal are sharply increasing, so the power costs are also increasing, and power enterprises virtually all cancelled direct power purchase agreement. For some silicon carbide production enterprises, the electricity prices are relatively higher, which makes the production cost increased by 200 Yuan/tons.

Through analysis, silicon carbide prices are mainly influenced by anthracite coal market prices. Experts think that the prices of anthracite have reached a peak and have stabilized, and the possibility that silicon carbide prices continue to rise is less likely. But now old customers express that the spot supply is still tight, so the silicon carbide prices will remain high for a period of time in the near future. Therefore, to buy quality silicon carbide with reasonable prices, please make contacts with the companies below: Qinyang Sanhui Refractory Material Co.,Ltd. and CIPIE(Henan)Import and Export Trade Co.,LTD.