Recently, the prices of silicon coal, a raw material for silicon metal, have experienced slight fluctuations in certain regions. In Ningxia, the price fluctuations of silicon coal are mainly influenced by cost factors. Due to the weakening demand expectations from downstream silicon metal manufacturers, silicon coal enterprises are increasingly reluctant to offer discounts to stimulate demand.
Under the influence of multiple price reductions in coking coal, the cost of silicon coal has also been weak. Coupled with relatively sluggish demand for silicon coal compared to previous years, some coal washing plants have reduced production, shifting their focus mainly to coking coal. With more downstream steel mills, the production and sales of silicon coal for silicon metal have decreased.
The recent price fluctuations of silicon coal in Ningxia are due to a slight increase in the price of raw coal at the mines, which led to an increase in silicon coal prices. However, as the inventory of raw coal from Shandong Energy remains at a relatively high level and the sales after the price increase were mediocre, the prices have recently been adjusted back to previous levels. Prices of silicon coal in other regions have remained largely stable without fluctuations.
After the Mid-Autumn Festival, due to the early expected shutdown of silicon enterprises in south-west China and the lack of enthusiasm for resuming production in small silicon enterprises in the north in October, many silicon coal manufacturers in Ningxia indicated that subsequent orders might remain weak. Although downstream silicon metal manufacturers suffer losses due to low prices, they do not plan to lower prices to stimulate silicon coal demand. Future price fluctuations will still mainly follow cost trends.
Manufacturers of non-caking silicon coal in Xinjiang also reported weakening orders from large factories. However, whether to continue offering discounts to stimulate downstream silicon coal demand is still under further consideration.
