Market Situation Analysis of Silicon Carbide in Recent Times

In April, the factory price including tax of 98 black silicon carbide lump material is around 4900-5100 RMB/ton in Ningxia, and 97 black silicon carbide lump material around 4800-5000 RMB/ton, and 88-90 black silicon carbide lump material around 3600-4000 RMB/ton; In Gansu, they have same factory prices including tax than that in Ningxia; The silicon carbide deoxidizer whose SiC is 75% and granularity is 0-10mm is sold about 2600-3100 RMB/ton.

Although the Spring Festival has gone for 2 months, but there is still half of silicon carbide production enterprises have not started their production after the Spring Festival. According to the research, the reasons that enterprises are not positive can be roughly summed up in following three points:

A, The receivable pressure is quite big. Some enterprises prefer not to manufacture, and also don't deliver goods without money. This spontaneous restricting output to ensure the prices among enterprises has obtained certain achievements in the current market, and some enterprises’ accounts receivable are reduced.

B, The market demand is low and some downstream enterprises make procurement as needed. In order to avoid the vicious competition between enterprises, they reduce the supply as the response.

C, During Spring Festival, enterprises make production equipment maintenance, and mainly choose to deal with inventory. After 2 months of sorting, the inventory is almost finished. Most enterprises say they may return to work in recent times, and at that time, the supply of silicon carbide on the market may be increased.

In Gansu, the black silicon carbide market as a whole is in stable situation, but the actual deal situation is not optimistic. Affected by the downstream demand, the prices of silicon carbide on the market are in disorder. The low-priced sales still exist, especially the falling prices of primary silicon carbide are obvious. This is mainly because some suppliers make sales strategy in order to reduce their risk and timely handle inventory, but the majority of manufacturers’ quotations are still relatively strong.

Local quartz sand has plentiful supply and stable price; Anthracite coming from many parts of Ningxia, its quotation is controlled about 700 RMB/ton, in steady operation. Electricity price preferential policy has not been implemented, and it is difficult to make a big change in the silicon carbide market recently in Gansu. Enterprises have serious wait-and-see attitude, basing production on sales prospects and keeping a small amount of inventory.