Silicon coal prices in some regions are slightly strong, and Formosa Plastics petroleum coke prices are firm [SMM Silicon Metal Raw Materials Weekly Review]

Silica: This week, silica market offers remained stable. Demand side, profit pressure persists in the silicon metal industry, and some silicon metal enterprises implemented production cuts this week, causing the overall operating rate to pull back. Downstream silicon plants, raw material procurement expectations further contracted, with plants following just-in-time procurement for orders and cost control intensity staying high. Overall, the production cuts downstream have not yet been transmitted to silica prices, and the short-term silica market is expected to remain mainly stable.

Silicon Coal: Silicon Coal: This week, the silicon coal market saw divergent regional trends, with caking coal prices in Xinjiang reduced by 100 yuan/mt to around 1,250 yuan/mt, while silicon coal offers in other regions remained stable. Demand side, from July to early August, operating rates at silicon metal enterprises in Xinjiang, Gansu, Inner Mongolia, and Sichuan pulled back, weakening downstream just-in-time procurement of silicon coal; the procurement growth brought by production resumptions during the rainy season in south-west China earlier weakened, leaving overall demand stimulation sluggish. Overall, the decline in downstream production further suppressed the silicon coal market, and the short-term silicon coal market remained in the doldrums.

Petroleum Coke: This week, the domestic petroleum coke market saw good trading performance, with segment trends diverging and overall prices holding up well. Port spot prices of Formosa Plastics petroleum coke continued to climb, currently at around 1,550-1,600 yuan/mt. According to SMM monitoring, as of this Thursday, the price index for 1# petroleum coke in north-east China was at 4,551.51 yuan/mt, up 3.07% from last Thursday. The price index for 4# petroleum coke in Shandong was at 2,088.15 yuan/mt, down 0.23% from last Thursday. Recently, domestic refinery operating rates rose, increasing market supply, but procurement enthusiasm from the demand side was moderate, coupled with restocking and stockpiling by downstream enterprises at the start of the month providing support, high- and low-sulfur varieties saw continued divergence in trends, and short-term petroleum coke prices are expected to mainly consolidate at highs.

Electrodes: Recently, carbon electrode prices edged up, with ordinary power carbon electrodes (diameter 1,272 mm) at 7,200-7,400 yuan/mt and ordinary power carbon electrodes (diameter 960-1,100 mm) at 6,300-6,600 yuan/mt, up around 200 yuan/mt from the previous period. This was mainly due to higher petroleum coke prices on the raw material side pushing up electrode production costs, with some producers moderately increasing their offers. Downstream silicon plants mainly made just-in-time procurement, and coupled with expectations of a weaker operating rate at silicon enterprises, the electrode price adjustment was mainly driven by the cost side, with the demand side remaining under pressure. Subsequent electrode prices are expected to shift to mainly remaining flat.