Market Analysis of Silicon Carbide in March 2016

In March, the factory price including tax of 98 black silicon carbide block material is 4900-5100 RMB/ton in Ningxia; 97 black silicon carbide block material at 4800-5000 RMB/ton; 88-90 black silicon carbide block material at 3600-4000 RMB/ton. In Gansu, the factory price including tax of 98 black silicon carbide is 5000-5200 RMB/ton; 97 black silicon carbide block material at 4800-5000 RMB/ton, 90 black silicon carbide block material at 3800-4000 RMB/ton.

It is reported that the silicon carbide market remains weak in Ningxia. Many enterprises that had planned to return to work in March did not put into production as planned, and chose to wait and see. The operating rate of overall market still remains low. Although most manufacturers’ offers have no obvious changes, but influenced by the orders, manufacturers have been in anxious mood, frequently changing the price in the process of actual transaction, which causes the prices of silicon carbide on the market is in disorder, and the competition also becomes intense. In Gansu, the silicon carbide market keeps steady. There are a certain amount of inventory on the market. The relationship between supply and demand are relatively stable and the basic supplies are given priority to old customers.

In January this year, the Development and Reform Commission in Gansu issued a notice about cutting down the grid purchase price for coal-burning electricity-generating enterprises and industry and commerce. In accordance with the requirements, the grid purchase price will be adjusted appropriately for coal-burning electricity-generating enterprises and industry and commerce. On the basis of the original price, it will be reduced by 2.72 points per kilowatt-hour, and after adjustment, the grid purchase price (including desulfurization, denitration and dedusting electricity price) is 0.2978 RMB/KWH (including tax).

Although the notice has been issued for many days, but for some silicon carbide production enterprises, the electricity price preferential policy is still not really carried out for enterprises, and the government of Gansu cancels the original electricity price preferential policies under the circumstances of not implementing new policy, which makes the current production cost increased by 200 RMB/ton than last year.

According to the analysis, the price change is crucial to silicon carbide production, which determines the late price of silicon carbide up or down, and silicon carbide manufacturers still need to give more attention to it.