Silicon coal, a raw material for silicon metal, is in the doldrums. Prices of petroleum coke will remain weak in the short term. [SMM Weekly Review of Silicon Metal Raw Materials]

Silica: The silica market was in the doldrums this week. In terms of supply, silica supply was loose, and mine-mouth inventory was under pressure. On the demand side, affected by the weak silicon metal market, silica demand was sluggish. In particular, despite the rainy season in south-west China, there were few production resumptions, which also affected the purchasing demand for silica. Therefore, silica demand currently remains limited to purchasing as needed. The current mine-mouth ex-factory prices of high-grade silica in Inner Mongolia are 310-350 yuan/mt. The mine-mouth ex-factory prices of low-grade silica in Yunnan are 320-340 yuan/mt. The mine-mouth ex-factory prices of low-grade silica in Guizhou are 170-210 yuan/mt. The mine-mouth ex-factory prices of high-grade silica in Hubei are 340-380 yuan/mt.

Silicon coal: The silicon coal market was in the doldrums this week. On the cost side, although there were signs of an upward trend in the coking coal futures market yesterday, the overall market sentiment remained in a state of price reduction, with producers maintaining a bearish outlook on the market. On the supply side, supply was relatively sufficient, but due to the low operating rate of silicon plants, there was significant competitive pressure between regions. To reduce inventory and mitigate the risk of inventory buildup, producers mostly adopted a strategy of supply as needed. On the demand side, it continued to show weakness, with purchases mainly driven by immediate restocking needs and a strong sentiment to drive down prices. Therefore, in the short term, the silicon coal market is expected to remain in a weak state.

Petroleum coke: During the week, the performance of refinery shipments in the post-holiday petroleum coke market was average, with prices stabilizing and declining. According to SMM data, the average price of petroleum coke at local refineries was approximately 2,255 yuan/mt, representing a MoM decline of approximately 0.53%. This week, transactions of Formosa Plastics petroleum coke in the petroleum coke market were relatively mediocre, with poor downstream purchasing. Currently, the market price ranges from 1,100 to 1,130 yuan/mt. Overall, downstream demand for petroleum coke is mainly driven by purchasing as needed, and in the short term, market prices for petroleum coke are expected to remain relatively weak.

Electrodes: The electrode market operated at a low level this week. On the cost side, affected by the recent decline in raw material prices, the cost support for electrodes weakened. However, due to the long production cycle of electrodes and the time lag in price changes of raw materials, some producers are currently experiencing losses. On the demand side, it remains sluggish. Despite the rainy season in south-west China, there have been few production resumptions at silicon plants, and the operating rates of silicon plants in other regions are also low, with purchases limited to purchasing as needed. On the supply side, affected by the decline in raw material prices and the gradual pullback in electrode prices, producers are experiencing slow shipments, significant inventory pressure, and strong wait-and-see sentiment. Some enterprises have reduced or suspended production and are currently mainly consuming inventory. Therefore, in the short term, given the weak supply and demand and inventory pressure, the electrode market is expected to remain in a weak state.

If you would like to obtain more detailed market information and dynamics, or have other information needs, please call 021-51666820.

》Check SMM silicon product quotes

》Subscribe to view the historical price trend of SMM metal spot cargo

》Click to view the SMM metal industry chain database