Ningxia silicon coal prices continue to fall, can prices stabilize under weak demand? [SMM Analysis]

The price of industrial silicon has now fallen below the production cost line of most silicon companies. Since March, silicon plants have been undergoing maintenance due to production losses, especially in the southwest production areas. Under the influence of maintenance of silicon companies, the demand for raw materials during the dry season is not high. The demand for silicon coal has further weakened.

The downstream consumption of silicon coal in Ningxia is mainly by silicon enterprises in the southwest. It is also sold to some silicon enterprises in the northwest for use as a binderless silicon coal ingredient.

The overall coal market has also performed poorly recently. In this scenario, the price of silicon coal is difficult to stabilize. Silicon coal in Ningxia fell with reductions in Shandong's energy prices.

Recently, the operation of silicon enterprises in the southwest region remains weak, and there is still no favorable support on the demand side. The price of silicon coal in Ningxia fell again in early April. Last week, some silicon companies in Northwest China have suspended raw material procurement and reduced production for maintenance. The demand for silicon coal has weakened slightly again and the price may remain weak. The current price of Ningxia silicon coal (mixed) is around 1450-1550 yuan/ton, and the price of Ningxia silicon coal (granular coal) is around 1800-1870 yuan/ton.