Market Situation Analysis of Silicon Carbide After Spring Festival

After Spring Festival, in Ningxia region, the factory price including tax of 98 black silicon carbide material is about 4900-5100 RMB/ton; The factory price including tax of 97 black silicon carbide material is 4800-5000 RMB/ton; The factory price including tax of 88-90 black silicon carbide material is 3600-4000 RMB/ton.

In Gansu region, the factory price including tax of 98 black silicon carbide material is 5000-5200 RMB/ton; The factory price including tax of 97 black silicon carbide material is 4800-5000 RMB/ton; The factory price including tax of 90 black silicon carbide material factory is 3800-4000 RMB/ton. The market of silicon carbide is in stable operation after Spring Festival, and enterprises’ offer is firm, with fewer deals in the market.

According to the survey, the majority of small and medium enterprises have not yet started the production. Only some large enterprises have gradually returned to work. The recovery of downstream demand is slow and the sales work has not yet been launched. The current market of silicon carbide is given priority to range trade.

In terms of policy, the power supply price in the China's domestic market is significantly higher than the international market, which seriously weakens profit margins and international competitiveness of the entity industry. A dime in feed-in tariffs may be a key to an enterprise's life, not matter how good the management of enterprises or the advantages and disadvantages of technique. Therefore, production enterprises of silicon carbide have been waiting the preferential policy in electricity price, hoping that the policies will be carried out as soon as possible.

But there are some companies expressing that the electricity price cut may be not a good thing. There are two reasons: First, if the price is cut, it will reduce the production cost, which will provide purchasers further support for demanding a lower price. Second, if the price is cut, it certainly will make the market starts increased, and more products will be in the market. In the case of the demand not seen better, if the production capacity is released ,it will make sellers' market in more adverse position.

According to the analysis, even if the electricity price is cut, it may only be good for part of enterprises; If the overall adjustment of electricity prices makes the production capacity released, it is bound to cause a downturn of the price of silicon carbide. For more information about high quality silicon carbide, welcome to contact the following silicon carbide suppliers: Qinyang Sanhui Refractory Material Co.,Ltd.and Yichuan Dongfeng Abrasives Co.,Ltd.