Market Analysis of Silicon Carbide in May

In Ningxia, the factory prices including tax of 98 black silicon carbide lump material are around 4900-5100 yuan/ton, 97 black silicon carbide lump material around 4800-5000 yuan/ton, and 88-90 black silicon carbide lump material around 3600-4000 yuan/ton. The prices have no obvious fluctuations, and the primary market supply is still tight.

In Gansu, the factory prices including tax of 98 black silicon carbide lump material are about 4900-5100 yuan/ton, 97 black silicon carbide lump material 4800-5000 yuan/ton, and 90 black silicon carbide lump material about 3600-4000 yuan/ton. The factory prices including tax of silicon carbide deoxidizer with 75% of SiC and 0-10mm of grit size are around 2600-3100 yuan/ton.

According to the survey for production enterprises in Ningxia, at present, a lot of cooperative enterprises are still given priority to cash, and the first class product shipment relatively has an advantage. Individual enterprises have the backlog of inventory, and they give priority to consuming inventory, so the production speed is reduced. The make-to-order can avoid to cause too much product backlog and increase cash flow pressure. The market prices were lower because of excess capacity and slow shipment, which have been adjusted by most of enterprises, but the refractory market demand is too weak. The overall market has not been reversed.

The market still remains weak in Gansu, and the market close rate has no obvious rise. The operating rate in Gansu is increased than before, which adds to the pressure of competition between manufacturers.

Therefore, many manufacturers desire to occupy market share by low price competition, but there are still some manufacturers that stick to their offers, because manufacturers thinks that  many old customers reach long-term cooperations with them due to high quality products, and hope that it will do not influence their long-term plans for short-term benefits.

As a whole, the silicon carbide market will continue to keep the current downturn in the short term.