Market Analysis of Silicon Carbide in August 2016

In August, the factory prices including tax of 98 black silicon carbide material are around 4700-5000 yuan/ton, 97 black silicon carbide material around 4500-4700 yuan/ton, and 90 black silicon carbide material around 3300-3600 yuan/ton. All prices are decreased by 200-300 yuan/ton from the previous month.

The factory prices including tax of silicon carbide deoxidizer whose SiC is 75% and grit size is from 0 to 10 mm are around 2600-3100 yuan/ton. In Ningxia, the factory prices including tax of 98 black silicon carbide material are around 4800-5000 yuan/ton, 97 black silicon carbide material around 4700-4900 yuan/ton, and 90 black silicon carbide material around 3500-3900 yuan/ton. The prices are decreased by 100 yuan/ton compared with the previous month.

It is learned that the market price of silicon carbide is lowered in Gansu, whose main reason is still the imbalance between supply and demand. Although the operating rate in Gansu is not high and the output of silicon carbide is also reduced, the market demand of downstream customers is still decreasing.

Therefore, the market competition is still intense now, and the price of silicon carbide is becoming transparency. The prices given by silicon carbide manufacturers are gradually getting close to the transaction price.

It is expected that the transportation problem will be also a problem of silicon carbide manufacturers in October because of green channel. Ningxia is also under the influence of the environmental issues, whose operating rate is not high. According to the news from local customers, the environmental protection check is still ongoing, and it is expected to recover normal production at the end of the month.

Though the operating rate is low and the output is also reduced, the prices of silicon carbide don’t increase, which is mainly because of weak market and market demand, and environmental protection policy. Most enterprises still have the inventory, and will not affect the spot market circulation in the short term, so the price not rises accordingly.