Market Analysis of Silicon Carbide in September 2016

In September, the market prices of silicon carbide remain stable in Gansu: 98 black silicon carbide lump material about 4700-5000 yuan/ton; 97 black silicon carbide lump material about 4500-4700 yuan/ton; 90 black silicon carbide lump material about 3300-3600 yuan/ton; silicon carbide deoxidizer (SiC: 75%, granularity: 0-10 mm) about 2600-3100 yuan/ton.

In Ningxia, 98 black silicon carbide lump material about 4800-5000 yuan/ton; 97 black silicon carbide lump material about 4700-4900 yuan/ton; 90 black silicon carbide lump material about 3500-3900 yuan/ton. The market is in smooth operation, with stable prices and market transaction.

At present, the market situation of silicon carbide is still not optimistic, and in the actual transaction, most of silicon carbide manufacturers have dropped to a very low price, and the profit space is quite narrow. What’s more, the transportation of agricultural products is not done in Gansu, and the freight also rises, which make silicon carbide transportation high pressure. In individual regions, the freight has risen above one hundred yuan.

In the aspect of raw materials, the destocking causes tension supply, and coal prices continue to rise since the beginning of this year, especially in summer, which brings great impact to silicon carbide manufacturers. Enterprises express that many silicon carbide manufacturers have shut down at present. Firstly, the anthracite coal prices are rising and supplies are tight, so they can't continue the production without raw materials; Secondly, the production costs are also rising, but the market prices of silicon carbide cannot rise, so most manufacturers choose to shut down for self-preservation.

Through analysis of anthracite coal prices, it soars because of the policy, not the real demand growth. If coal enterprises are approved to recover the production, the raw material supply will be adequate at that time.

In the aspect of exports, the exports of silicon carbide in our country were about 186000 tons from January to July in 2016, with 1.4% year-on-year decline, and the total amount of exports is about $169.531 million, with 9.3% year-on-year decline. China’s silicon carbide is mainly exported to the United States about 42300 tons, Japan about 37400 tons and South Korea about 37100 tons. In addition, the Netherlands, Germany, Italy and other European countries also import great quantity of silicon carbide from China.

Qinyang Sanhui Refractory Material Co.,Ltd. and CIPIE(Henan)Import and Export Trade Co.,LTD. consistently adhere to supplying high quality silicon carbide and providing professional services for buyers all over the world. If you are interested, please click the links above to view more information.