[SMM analysis] Weakness in upstream and downstream links affects the price of silicon coal in Ningxia

Shandong Energy's silicon coal prices took the lead in falling during the week. The current price of blended coal is 1,580 yuan/ton, and that of granular coal is 1,900 yuan/ton, which is generally reduced by 100 yuan/ton. This price reduction has driven down the prices of many silicon coal manufacturers in Ningxia to varying degrees.

Driven by the current price drop of Shandong Energy, other silicon coal manufacturers in Ningxia have also lowered their prices to varying degrees, and the prices are mostly around the price of silicon coal of Shandong Energy. The price of blended coal in Ningxia is around 1,520-1,620 yuan/ton. The price of Ningxia granular coal is around 1,900-1,980 yuan/ton.

This price drop is affected by two aspects - the weak coal environment and the weak industrial silicon market. On the 19th, leading silicon companies generally adjusted the silicon price by 600 yuan/ton, which intensified the downstream industry. The silicon market is pessimistic. The current silicon price has fallen to the cost line in most production areas in the north. Manufacturers are under great production pressure, and the silicon plant operation in the south-west is sluggish. There is insufficient support for the downstream silicon coal in Ningxia. Some silicon coal manufacturers in Ningxia still hold a pessimistic view on the market price.