Demand for Silicon Metal Raw Materials Remains Weak; Prices of Silicon Coal and Petroleum Coke Both Decline [SMM Weekly Review on Silicon Metal Raw Materials]

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Silica: This week, silica prices remained largely stable. Entering mid-March, silicon enterprises in north China typically conduct small-scale supplementary purchases of silica raw materials during the same period in previous years, while those in south-west China prepare sufficient raw materials for production resumption during the rainy season. However, due to the continued weakness in the silicon market, production resumption plans for silicon enterprises in south-west China have been delayed, and the overall operating rate of silicon plants in north China is also not optimistic. Large silicon plants, despite operating at high levels, have limited demand for externally purchased silica, while smaller silicon plants have seen more production cuts or shutdowns, leading to reduced demand for silica raw material purchases. Currently, the mine-mouth price of low-grade silica in Yunnan is 330-350 yuan/mt. The mine-mouth price of high-grade silica in Inner Mongolia is 350-380 yuan/mt, in Hubei is 400-450 yuan/mt, and in Jiangxi is 430-460 yuan/mt.

Silicon Coal: This week, silicon coal prices in some regions saw a decline. Downstream silicon plants continued to show weak demand. In Xinjiang, prices of caking silicon coal dropped significantly this week, partly due to the prolonged weak demand from downstream silicon plants and partly because the previously stable high prices of caking silicon coal in Xinjiang had been maintained for many days, which, under the impact of lower-priced silicon coal from other regions, increasingly highlighted its price disadvantage, leading to recent official price reductions. In Ningxia, silicon coal prices also declined as top-tier enterprises further reduced coal prices, driving local prices lower. It is worth noting that while top-tier enterprises in Ningxia reduced coal prices, other local washing plants and silicon coal plants in Gansu did not fully follow suit, with only a small portion showing price reductions. Currently, the ex-factory price of silicon coal (granular) in Ningxia is 1,260-1,420 yuan/mt, with an average price decrease of 30 yuan/mt. The ex-factory price of silicon coal (mixed) in Ningxia is 1,060-1,090 yuan/mt, with an average price decrease of 30 yuan/mt. The ex-factory price of silicon coal (mixed) in Gansu is 1,090-1,110 yuan/mt, while the ex-factory price of silicon coal (granular) in Gansu is 1,250-1,270 yuan/mt. The ex-factory price of silicon coal in Xinjiang is 1,650-1,670 yuan/mt, with an average price decrease of 190 yuan/mt. The ex-factory price of non-caking silicon coal in Xinjiang is 1,100-1,120 yuan/mt, and in Shaanxi is 940-960 yuan/mt.

Petroleum Coke: According to the latest market conditions, refinery shipments of petroleum coke during the week remained relatively average, with prices continuing to weaken. According to SMM data, the average price of petroleum coke from local refineries was approximately 2,498 yuan/mt, down 12.8% WoW. Meanwhile, the transaction performance of Formosa coke was also unsatisfactory, with current market quotations ranging from 1,350 to 1,400 yuan/mt. Overall, downstream enterprises in the petroleum coke market maintained a wait-and-see attitude, with weak purchase willingness. It is expected that petroleum coke prices may remain stable to slightly weaker next week.

Electrodes: Electrode prices remained stable at low levels. The overall demand for raw materials in the silicon metal industry remained weak, and silicon prices continued to decline. Additionally, the cost side saw some weakening support as calcined petroleum coke prices recently pulled back. The upward momentum for prices of electrodes used in silicon production remains limited, and prices are expected to remain largely stable in the near term. 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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