Affected By Silicon Metal Market, Silicon Coal Prices Remained At A Low Level

Recently, although silicon metal enterprises in Southwest China gradually resumed production, their profits were limited. Some silicon coal mines reported that silicon metal enterprises had limited acceptance of current silicon coal prices. The prices of silicon coal stayed at a low level.

At present, silicon coal prices in Xinjiang still stay high. Yongxin’s daily silicon coal output was low. Despite the low price acceptance from the downstream, its overall sales pressure was relatively low due to the high quality of its product. The ex-factory prices remained stable at around 2,000 yuan/mt. The price of non-caking silicon coal in Xinjiang declined under the dual pressure of price cut pressure from leading silicon enterprises in Xinjiang and silicon coal prices in Shaanxi, with current ex-factory prices around 1,430 yuan/mt. After a slight cut in silicon coal prices by Shandong Energy last week, there are no plans for price adjustments in the near future. Silicon coal prices in Ningxia remained stable. By the end of May, most silicon metal enterprises in Sichuan have secured raw materials and gradually resumed production within May. Only a few silicon metal enterprises in Ya'an and Leshan planned to restart in early June. Therefore, the demand for silicon coal in Ningxia slowly recovered. However, many local silicon coal manufacturers reported low acceptance of prices from the downstream amid sluggish silicon metal market. Currently, the ex-factory price of Ningxia silicon coal (particles) is around 1,800-1,850 yuan/mt. The ex-factory price of Shandong Energy silicon coal (mixed) is around 1,480 yuan/mt, and 1,800 yuan/mt for silicon coal (particles). Compared to the same period last year, the price of silicon coal in Ningxia decreased by about 40 yuan/mt YoY, non-caking silicon coal in Xinjiang drooped by about 370 yuan/mt YoY, and silicon coal in Xinjiang fell by about 75 yuan/mt YoY. Even though the cost of silicon coal slightly fell compared to last year, the profits of the silicon metal sector were still limited.