Silicon coal remains weak, electrode prices rise, and petroleum coke performs well [SMM Weekly Review of Silicon Metal Raw Materials]

Silica: This week, the silica market continued to operate in a weak and stable manner. In terms of supply, the overall supply remained loose, and there was still inventory pressure at the mine mouths. In terms of demand, influenced by the rainy season and the recent upward trend in the silicon metal market, a small number of silicon plants in south-west China resumed production, leading to a slight increase in demand for raw materials. However, purchases were still mainly small orders with price-driving behavior. Therefore, overall, the silica market is expected to continue operating in a weak and stable manner in the short term. Currently, the mine-mouth ex-factory prices of high-grade silica in Inner Mongolia range from 300 to 330 yuan/mt. In Hubei, the mine-mouth ex-factory prices of high-grade silica range from 290 to 320 yuan/mt. In Jiangxi, the mine-mouth ex-factory prices of high-grade silica range from 380 to 420 yuan/mt, while the mine-mouth ex-factory prices of low-grade silica range from 310 to 330 yuan/mt.

Silicon coal: This week, the transaction prices of silicon coal in some regions declined. In the recent spot market for coking coal, the raw material end, influenced by environmental protection checks and the rebound in futures, market expectations for a price increase heated up. Restocking behavior by downstream enterprises and traders drove down coking coal inventory, leading to a slight increase of 50 yuan/mt in the quotations of individual coal mines. However, the current rebound in coking coal remains weak, providing limited support for silicon coal costs and not enough to drive a synchronous increase in silicon coal prices. Moreover, in some regions, producers mainly engaged in silicon coal have seen the center of transaction prices decline due to severe purchasing prices from downstream silicon plants. Currently, the average price of non-caking silicon coal in Xinjiang is 710 yuan/mt, the average price of caking silicon coal in Xinjiang is 1,250 yuan/mt, the average price of silicon mixed coal in Gansu is 840 yuan/mt, the average price of granular coal is 960 yuan/mt, the average price of silicon mixed coal in Ningxia is 875 yuan/mt, and the average price of granular coal is 1,040 yuan/mt.

Petroleum coke: This week, the shipment of petroleum coke in the market was moderate. The low-sulphur petroleum coke market continued its upward trend, while prices in the medium-to-high-sulphur market fluctuated, with an overall strong performance. According to the latest data from SMM, the average price of petroleum coke from local refineries was reported at 2,334 yuan/mt, up slightly by 0.34% MoM. Additionally, the transaction performance of Formosa Plastics petroleum coke remained sluggish throughout the week, with prices continuing to weaken. The current quotation range in the market is concentrated at 950-990 yuan/mt. Judging from the overall market performance, purchases by downstream enterprises are gradually returning to a just-in-time demand mode, and it is expected that subsequent market transactions will stabilize. Based on a comprehensive assessment, SMM predicts that petroleum coke prices are likely to operate in a generally stable with slight fall manner next week.

Electrode: This week, electrode market prices showed an upward trend. Firstly, on the cost side, since July, the market price of low-sulphur petroleum coke, a raw material, has continued to rise multiple times, providing strong support for costs. Additionally, on the demand side, influenced by the rainy season, some silicon plants in south-west China resumed production, leading to a slight increase in purchasing demand for raw materials. This demand was transmitted to the supply side, resulting in a slight destocking situation. Therefore, driven by these comprehensive factors, electrode prices explored an upward trend. Currently, the quotation for ordinary power carbon electrodes with a diameter of 960-1100mm ranges from 6,400 to 6,600 yuan/mt, the quotation for ordinary power carbon electrodes with a diameter of 1,272mm ranges from 7,200 to 7,600 yuan/mt, the quotation for ordinary power graphite electrodes with a diameter of 960-1100mm ranges from 10,000 to 10,200 yuan/mt, the quotation for ordinary power graphite electrodes with a diameter of 1,272mm ranges from 11,400 to 11,600 yuan/mt, and the quotation for ordinary power graphite electrodes with a diameter of 1,320mm ranges from 12,400 to 12,600 yuan/mt.

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