The silicon coal market weakened, with prices continuing to fall in some regions [SMM Analysis]

The prices of silicon coal, a raw material for silicon metal, have remained weak recently in some regions. The weak demand for silicon metal downstream and the simultaneous weakening of coking coal prices led to further price reductions in some regions.

Looking at the price trends of silicon coal in various regions this year, it can be observed that prices have been on a downward trend throughout the year. Recently, the most frequent price reductions have been seen in Ningxia.

Silicon coal in Ningxia mainly supplies silicon enterprises in Sichuan and Yunnan. Although it is currently the rainy season in these regions and downstream silicon enterprises operate at a high level for the year, the long-term low prices of silicon this year have led to losses for most silicon enterprises even during the rainy season. Since August, some silicon enterprises in Ya'an and Leshan in Sichuan, and Dehong in Yunnan, have gradually reduced production and shut down furnaces. Currently, silicon enterprises in Sichuan and Yunnan are more willing to shut down furnaces earlier than in previous years, leading to weaker demand for silicon metal raw materials compared to previous years.

Due to the weakening demand, coking coal prices have also performed poorly, which has led to lower prices for silicon coal in Ningxia. Under multiple bearish factors, the price of silicon coal in Ningxia has been frequently adjusted downwards recently. Currently, the new order price for mixed coal in September is around 1,270-1,300 yuan/mt, and the price for granular coal is around 1,560-1,600 yuan/mt.

In other regions, silicon coal prices have stayed relatively stable. Currently, only caking silicon coal in Xinjiang remains at a high level. According to SMM, silicon coal manufacturers in Xinjiang offer discounts for large single-batch orders. However, even with these concessions, the signing price remains above 2,000 yuan/mt, resulting in a significant price spread compared to silicon coal prices in other regions.