Silicon Metal Raw Material Prices Hold Steady, Petroleum Coke Market Consolidates and Adjusts [SMM Silicon Metal Raw Material Weekly Review]

Silica: This week, silica market prices remained broadly stable, with regional quotations holding steady. The mine-mouth price for high-grade silica in Hubei was still at 310-350 yuan/mt, while the mine-mouth price for high-grade silica in Inner Mongolia stood at 290-330 yuan/mt, low-grade silica in Inner Mongolia at 200-240 yuan/mt, and low-grade silica in Yunnan at 150-180 yuan/mt. On the demand side, just-in-time procurement posted a slight increase, but silicon metal plants strictly controlled costs and prioritized price comparisons in procurement, intensifying competition for supply among regions. However, overall supply-side operations were affected by weather and other factors, leading to a slight decline in operating rates; supply tightened somewhat but remained ample overall. As a result, silica prices are expected to stay stable in the short term.

Silicon coal: This week, silicon coal market prices held steady, with silicon granular coal in Gansu at 1,140 yuan/mt and silicon mixed coal at 1,060 yuan/mt; silicon granular coal in Inner Mongolia and Ningxia at 1,340 yuan/mt; Xinjiang non-caking silicon coal at 855 yuan/mt; and Xinjiang caking silicon coal at 1,400 yuan/mt. Demand side, Southwest silicon metal plants continued to resume production during the rainy season, and the industry operating rate steadily improved, boosting just-in-time procurement volume for silicon coal, which edged up WoW. However, spot silicon metal prices remain under pressure, and downstream silicon metal plants are struggling with weak profitability, leading to more conservative raw material procurement strategies. Most are restocking only as needed, and cost-control demands are prominent, fueling strong sentiment in the market to push for lower prices.

Petroleum coke: This week, China’s petroleum coke market saw decent trading activity. Port spot quotations for Formosa Plastics petroleum coke rose markedly, with mainstream prices climbing to 1,400-1,450 yuan/mt. SMM data showed that as of Thursday, the Shandong 4# petroleum coke price index was at 2,018.56 yuan/mt, up 8.06% from last Thursday. During the week, typhoon-related temporary closures at Shandong ports disrupted discharge and transport of imported petroleum coke, prompting downstream users to turn to domestic supply for just-in-time procurement. Demand for domestic substitution was released in a concentrated manner. Coupled with restricted shipping routes driving up refineries’ crude oil procurement cost expectations, a confluence of positive factors pushed China’s petroleum coke prices significantly higher. Subsequently, as Shandong ports gradually resumed loading and unloading operations, trading sentiment in the domestic coke market shifted from strength to stability, entering a consolidation and adjustment phase.

Electrode: This week, prices of electrodes used in silicon production remained low, lacking upward momentum amid weak supply and demand. Production resumptions at Southwest silicon plants brought a small increase in just-in-time procurement, but the overall operating rate of the silicon metal industry is still low, keeping the consumption pace of electrodes used in silicon production slow. Currently, ordinary power carbon electrodes with diameter 960-1,100mm are quoted at 6,000-6,600 yuan/mt; ordinary power carbon electrodes with diameter 1,272mm at 7,000-7,400 yuan/mt; ordinary power graphite electrodes with diameter 960-1,100mm at 10,800-11,200 yuan/mt; ordinary power graphite electrodes with diameter 1,272mm at 12,200-12,800 yuan/mt; and ordinary power graphite electrodes with diameter 1,320mm at 12,800-14,200 yuan/mt.

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