Both Price and Demand for Raw Materials of Silicon Metal Are Weak, with Petroleum Coke Prices Predominantly Stabilizing or Declining in the Short Term [[SMM] Weekly Review of Raw Materials for Silicon Metal]

Silica: This week, the silica market continued to exhibit a weak demand pattern, with prices in some regions experiencing slight declines. Affected by the recent low overall operating rate of silicon metal plants, particularly the weak willingness of silicon metal plants in south-west China to resume production during the rainy season, silica purchases remained primarily small-scale and driven by immediate needs, with a strong sentiment to drive down prices. Consequently, prices in some regions were slightly reduced. Currently, the mine-mouth price of high-grade silica in Jiangxi ranges from 420 to 460 yuan/mt. The mine-mouth price of low-grade silica in Jiangxi ranges from 330 to 370 yuan/mt, a decrease of 10 yuan/mt from the previous period. The mine-mouth price of high-grade silica in Guizhou ranges from 290 to 330 yuan/mt. The mine-mouth price of high-grade silica in Hubei ranges from 350 to 390 yuan/mt. The mine-mouth price of high-grade silica in Inner Mongolia ranges from 320 to 370 yuan/mt.

Silicon coal: This week, prices in some regions of the silicon coal market experienced declines. As downstream demand remained weak and the consumption cycle of raw materials continued to lengthen, purchases were primarily small-scale and driven by immediate needs for restocking, placing significant pressure on silicon coal plants. Consequently, prices of caking and non-caking silicon coal in Xinjiang were slightly reduced again this week. However, due to the impact of pre-holiday restocking, the market remained relatively calm post-holiday, with low liquidity. Currently, the price of silicon mixed coal in Gansu ranges from 1,010 to 1,030 yuan/mt, and the price of granular coal ranges from 1,170 to 1,190 yuan/mt. In Xinjiang, the price of non-caking silicon coal ranges from 880 to 920 yuan/mt, and the price of caking silicon coal ranges from 1,400 to 1,500 yuan/mt, a decrease of 50 yuan/mt from the previous period. The price of granular coal (ash content 5%-6%) in Ningxia ranges from 1,400 to 1,500 yuan/mt.

Petroleum coke: The current petroleum coke market is characterized by weak supply and demand, with refinery shipments being hindered and downstream procurement sentiment remaining cautious, driving prices to continue their downward trend. SMM data indicates that the average price of petroleum coke from local refineries has fallen to 2,417 yuan/mt, a decrease of approximately 2.78% from the pre-holiday period, with significant market pessimism. This week, there were no significant fluctuations in the trading of Formosa Plastics petroleum coke, and downstream purchases were poor, with current market prices ranging from 1,200 to 1,250 yuan/mt. Overall, many petroleum coke refineries are currently undergoing shutdowns for maintenance, providing bottom support for petroleum coke prices. However, weak downstream demand for petroleum coke is exerting significant downward pressure on prices. SMM expects that petroleum coke prices will remain stable with a downward bias in the short term.

Electrodes: This week, electrode prices remained stable at low levels. Downstream demand from silicon metal plants remained weak, with electrode purchases primarily driven by immediate needs. Currently, the ex-factory price of ordinary power carbon electrodes (with a diameter of 960-1,100mm) ranges from 7,400 to 7,800 yuan/mt.The ex-factory prices of ordinary power graphite electrodes (with diameters of 960-1,100mm) range from 11,000 to 12,000 yuan/mt. The ex-factory prices of ordinary power graphite electrodes (with a diameter of 1,272mm) range from 12,000 to 13,000 yuan/mt. The ex-factory prices of ordinary power graphite electrodes (with a diameter of 1,320mm) range from 13,000 to 14,000 yuan/mt.

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