Silica and silicon coal under pressure, electrode market stagnant, petroleum coke price increase narrows [SMM Weekly Review of Silicon Metal Raw Materials]

Silica: This week, the silica market remained in the doldrums. In terms of supply, mine-mouth inventory was under pressure, and there was significant pressure to sell goods. As a result, the overall supply remained loose. In some regions, mines reduced production or suspended operations to alleviate inventory pressure. On the demand side, affected by the low resumption rate of silicon plants in the rainy season in south-west China and the low operating rate of silicon plants in other regions, overall demand remained weak. Purchases were mainly driven by immediate needs, and downstream enterprises had a strong sentiment to drive down prices. Currently, the mine-mouth ex-factory price of high-grade silica in Inner Mongolia ranges from 300 to 340 yuan/mt. The mine-mouth ex-factory price of high-grade silica in Inner Mongolia ranges from 320 to 350 yuan/mt. The mine-mouth ex-factory price of high-grade silica in Jiangxi ranges from 380 to 420 yuan/mt. The mine-mouth ex-factory price of low-grade silica in Jiangxi ranges from 310 to 330 yuan/mt.

Silicon coal: This week, the silicon coal market price showed a differentiated pattern. Manufacturers in regions where silicon coal is the main product were affected by inventory pressure, leading to a slight downward shift in the center of actual transaction prices and a certain loss-making situation for producers. However, for other manufacturers whose main products are not limited to silicon coal, prices remained temporarily stable. Currently, the average price of silicon mixed coal in Gansu is 840 yuan/mt, and the average price of granular coal is 960 yuan/mt. In Ningxia, the average price of silicon mixed 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 continued its upward trend, but the upward momentum significantly slowed down. According to the latest data from SMM, the average price of petroleum coke from local refineries was reported at 2,327 yuan/mt, up slightly by 0.33% MoM. Additionally, the transaction performance of Formosa Plastics petroleum coke remained sluggish throughout the week, with prices continuing to weaken. The current market quotation range is concentrated at 950-1,000 yuan/mt. Judging from the overall market performance, the enthusiasm of downstream enterprises for purchasing goods has cooled down, and the rhythm of refinery shipments has slowed down significantly. Based on this market situation, SMM predicts that petroleum coke prices will be generally stable with slight fall next week.

Electrode: This week, the electrode market remained in the doldrums. On the demand side, affected by the low resumption rate of silicon plants in the rainy season in south-west China and the low operating rate of silicon plants in other regions, purchases of raw material electrodes were cautious, mainly driven by immediate needs for restocking. In terms of supply, the current operating rate of various production manufacturers remained low, mainly focusing on destocking. Additionally, due to the weak demand from downstream silicon plants, the overall shipment speed was slow. On the cost side, the price of low-sulphur petroleum coke at the raw material end increased slightly at the beginning of the week, but this has not yet been transmitted to the electrode end. However, based on a comprehensive analysis of supply and demand, there is significant resistance to electrode price increases. In the short term, the electrode market is expected to remain in the doldrums. Currently, the quoted prices for ordinary power carbon electrodes with diameters of 960-1100mm are 6,100-6,300 yuan/mt, while those with diameters of 1272mm are 6,800-7,000 yuan/mt. For ordinary power graphite electrodes with diameters of 960-1100mm, the quoted prices are 9,300-9,500 yuan/mt, and those with diameters of 1272mm are 10,900-11,100 yuan/mt.

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