As Chinese New Year Approaches, Demand for Silicon Raw Materials Remains Weak, While Petroleum Coke Prices Stand Out [SMM Weekly Review on Silicon Metal Raw Materials]

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SMM, January 22: As the Chinese New Year approaches, demand for raw materials in the silicon metal sector remains largely weak, with prices also largely stable at low levels. Recently, only petroleum coke prices have stood out, continuing to increase.

Silica: This week, silica prices remained stable. With the Chinese New Year approaching, transportation capacity has been tightening, and mine-mouth safety management has been strengthened. As a result, recent mine-mouth order shipments have been limited and are expected to gradually recover after the holiday. However, as downstream silicon metal producers had stockpiled sufficient silica raw materials for the winter earlier, coupled with the fact that domestic silicon metal production remains at low levels, downstream silica procurement enthusiasm is expected to significantly recover around March.

Currently, the mine-mouth price of low-grade silica in Yunnan is 340-350 yuan/mt. The mine-mouth price of high-grade silica in Inner Mongolia is 360-390 yuan/mt. The mine-mouth price of high-grade silica in Hubei is 420-450 yuan/mt. The mine-mouth price of high-grade silica in Jiangxi is 440-460 yuan/mt.

Silicon Coal: This week, silicon coal prices remained stable. As the Chinese New Year approaches, downstream silicon metal producers' raw material procurement demand has weakened further. Coupled with increasingly tight transportation capacity, it has become more difficult to arrange shipments for silicon coal. Recently, only a few large downstream plants still have silicon coal orders awaiting shipment and delivery. Overall, the silicon coal market demand remains sluggish. Under the influence of weak demand, the cost side also lacks strong support. Coking coal prices have recently fluctuated downward, and some silicon coal plants in certain regions have reported that if coking coal prices continue to decline, they will follow the downward trend. Silicon coal prices are likely to face further downside room.

Currently, the ex-factory price of silicon coal (granular) in Ningxia is 1,360-1,550 yuan/mt, while silicon coal (mixed) is 1,180-1,200 yuan/mt. In Gansu, the ex-factory price of silicon coal (mixed) is 1,170-1,190 yuan/mt, and silicon coal (granular) is 1,320-1,340 yuan/mt. In Xinjiang, the ex-factory price of silicon coal is 1,800-1,900 yuan/mt, and non-caking silicon coal is 1,150-1,170 yuan/mt. In Shaanxi, the ex-factory price of silicon coal is 940-960 yuan/mt.

Petroleum Coke: Recently, petroleum coke prices have continued to increase, mainly driven by reduced supply and increased downstream demand. As the Chinese New Year holiday approaches, downstream carbon enterprises have been actively stockpiling, further supporting the price increase. As of now, the average price of petroleum coke from local refineries has reached approximately 2,108 yuan/mt, up 4.1% WoW. Meanwhile, the price of Formosa coke remains stable at 1,050-1,100 yuan, as market trading volume has been relatively sluggish with the holiday approaching. Overall, the petroleum coke market has shown an upward trend driven by both supply and demand factors.

Electrodes: Electrode prices remained stable. On the raw material side, demand for electrodes used in silicon production has been weak recently. With the Chinese New Year approaching, market activity has become even more mediocre. Currently, prices of electrodes used in silicon production have been running at low levels for a long time. Meanwhile, calcined petroleum coke prices have frequently increased in the past, putting significant production pressure on electrode producers. However, due to prolonged losses in the downstream silicon metal sector, it has been difficult for electrode prices to rise, and they have remained stable at low levels.

Currently, the ex-factory price of ordinary power carbon electrodes (diameter 960-1,100mm) is 7,400-7,800 yuan/mt. The ex-factory price of ordinary power graphite electrodes (diameter 960-1,100mm) is 11,000-12,000 yuan/mt. The ex-factory price of ordinary power graphite electrodes (diameter 1,272mm) is 12,000-13,000 yuan/mt. The ex-factory price of ordinary power graphite electrodes (diameter 1,320mm) is 13,000-14,000 yuan/mt.

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