Silicon Coal Price Adjustment: Prices Drop Across Multiple Regions [SMM Analysis]

As year-end approaches, the raw material market for silicon metal has been relatively stable. However, at the end of November, the silicon coal market, which had maintained stable prices for several days, experienced another price adjustment. This time, the price drop was significant, and silicon coal prices in multiple regions followed suit.

In late November, a major silicon coal manufacturer decided to lower its prices. Although the reason for the price reduction was not publicly disclosed, feedback from various sources indicated that the overall demand for silicon coal this year was not as strong as last year. This was especially true for silicon coal in Ningxia, where the downstream silicon metal market has been fluctuating downward throughout the year. Additionally, the resumption of production during the rainy season in south-west China was delayed, and the shutdown period during the dry season started earlier this year, resulting in a reduced production time within the year. Consequently, the demand for silicon coal in Ningxia significantly decreased. In late October and late November, there were two waves of concentrated production cuts in the silicon metal enterprises in Sichuan and Yunnan. The first large-scale production cut occurred at the end of October, followed by another smaller wave of furnace shutdowns at the end of November. By December, the number of operating silicon metal enterprises in Sichuan and Yunnan was very limited, and the demand for raw materials was also very low. Currently, the price of mixed silicon coal in Ningxia and Gansu is around 1,200-1,300 yuan/mt, while the price of granular silicon coal ranges between 1,400-1,600 yuan/mt.

Following the initial price adjustment by Shandong Energy, the silicon coal prices in Ningxia also fell, and the prices in Gansu adjusted downward simultaneously. Besides Ningxia and Gansu, there were reports of recent price adjustments for silicon coal in Korla, Xinjiang. After the price adjustment in Korla, the execution price for mixed silicon coal was 1,000 yuan/mt.

Although silicon coal prices are currently at low levels, frequent production cuts and shutdowns in the downstream silicon metal sector have been observed recently. The current raw material procurement is mainly focused on the winter raw material storage needs of some northern silicon metal enterprises, and overall demand support remains insufficient.