The electrode market for silicon metal raw materials is in the doldrums, with petroleum coke prices experiencing short-term fluctuations and consolidation [SMM Weekly Review of Silicon Metal Raw Materials]

Silica: This week, the silica market continued to exhibit a situation of loose supply and weak demand. In terms of supply, the overall supply was relatively loose, with inventory pressure at mine mouths. On the demand side, the market remained persistently weak, with a strong wait-and-see sentiment and insufficient confidence in the subsequent market development. This led to only small-order just-in-time procurement on the silica demand side. Additionally, downstream enterprises had a strong sentiment to drive down prices, further compressing the bargaining space for silica producers. Currently, the mine-mouth price of high-grade silica in Inner Mongolia ranges from 310-350 yuan/mt. In Yunnan, the mine-mouth price of low-grade silica ranges from 300-320 yuan/mt. In Guizhou, the mine-mouth price of low-grade silica ranges from 170-210 yuan/mt. In Hubei, the mine-mouth price of high-grade silica ranges from 340-370 yuan/mt.

Silicon Coal: This week, the silicon coal market consolidated in a weak position. In terms of supply, producers continued to arrange production based on order conditions, with no inventory pressure, and the overall supply remained at a normal level. On the demand side, there was a regional differentiation trend. In north-west China, due to the recent resumption of production at some silicon plants, there was a slight increase in demand for silicon coal. In other regions, the operating rate of silicon plants remained low, and procurement was mainly for small-order just-in-time restocking. On the cost side, although coking coal futures performed well, there was still no substantial improvement in downstream demand, so spot cargo remained relatively quiet with no significant price fluctuations, providing some support for silicon coal prices. Currently, the average price of mixed silicon coal in Gansu is 840 yuan/mt, and the average price of granular coal is 960 yuan/mt. In Ningxia, the average price of mixed silicon coal is 900 yuan/mt, and the price of granular coal is 1,140 yuan/mt. In Xinjiang, the average price of non-caking silicon coal is 710 yuan/mt, and the price of caking silicon coal is 1,250 yuan/mt.

Petroleum Coke: This week, the petroleum coke market bottomed out and rebounded, with downstream enterprises showing increased procurement enthusiasm. In particular, prices of medium- and low-sulphur petroleum coke turned from decline to increase, while prices of high-sulphur petroleum coke were largely stable. SMM data showed that the average price of petroleum coke at local refineries was reported at 2,208 yuan/mt, down 0.99% MoM. Transactions of Formosa Plastics petroleum coke were relatively mediocre during the week, with poor downstream purchasing. Prices of Formosa Plastics petroleum coke were largely stable, currently ranging from 1,000-1,050 yuan/mt. Overall, the current domestic supply of petroleum coke is relatively abundant, and downstream procurement sentiment has recovered with improved demand. It is expected that petroleum coke prices will consolidate with fluctuations in the short term.

Electrodes: This week, the electrode market remained in the doldrums. On the cost side, although there was a slight increase in raw material prices this week, there was no significant change in the impact on electrode prices. On the supply side, the overall focus remained on destocking, with the industry's overall operating rate remaining low. On the demand side, suppressed by weak demand from both silicon plants and steel mills, the trading atmosphere was sluggish, and there was a strong sentiment to drive down prices, with only small-order just-in-time restocking maintained. Currently, the quoted price for ordinary power carbon electrodes with a diameter of 960-1,100mm ranges from 6,200-6,400 yuan/mt, and for those with a diameter of 1,272mm, it ranges from 6,900-7,100 yuan/mt. The quoted price for ordinary power graphite electrodes with a diameter of 960-1,100mm ranges from 9,300-9,500 yuan/mt, and for those with a diameter of 1,272mm, it ranges from 10,900-11,100 yuan/mt.

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