Weak and Stable Silicon Coal Prices [SMM Analysis]

Currently, although silicon metal enterprises in south-west China are gradually resuming production, the profit margin remains limited. Some silicon coal manufacturers report that silicon metal enterprises have limited acceptance of raw material silicon coal prices. Recently, the prices of silicon coal have remained stable and are still at a low level.

At present, silicon coal prices in Xinjiang are still at a high level. However, due to the relatively low daily production of Yongxin silicon coal and its high quality, despite the low acceptance of downstream prices, the overall sales pressure is relatively low, and the ex-factory prices remain stable at around 2,000 yuan/mt. The price of non-bonded silicon coal in Xinjiang has recently declined, with the current ex-factory price around 1,430 yuan/mt.

Silicon coal prices in Ningxia have remained mostly stable recently. After a slight decline in prices by Shandong Energy last week, there are no plans for price adjustments in the near future. Ningxia silicon coal prices have followed this trend and remained stable. By the end of May, downstream silicon metal enterprises in Sichuan have mostly completed their preparations for resuming production, with most enterprises gradually resuming production within the month. Only a few enterprises in Ya'an and Leshan plan to resume production in early June. The demand for Ningxia silicon coal is gradually recovering, but the downstream silicon metal market remains weak, and many Ningxia silicon coal manufacturers report low acceptance of downstream prices. Currently, the ex-factory price of Ningxia silicon coal (granule) is around 1,800-1,850 yuan/mt, while the ex-factory price of Shandong Energy silicon coal (mixed) is around 1,480 yuan/mt, and the ex-factory price of particles is around 1,800 yuan/mt.

Compared to the same period last year, the price of Ningxia silicon coal has decreased by about 40 yuan/mt YoY, the price of non-bonded silicon coal in Xinjiang has decreased by about 370 yuan/mt YoY, and the price of silicon coal in Xinjiang has decreased by about 75 yuan/mt YoY. The cost of silicon coal has slightly decreased compared to last year, but the profit margin in the silicon metal sector is still insufficient. Therefore, influenced by this market trend, silicon coal prices are expected to remain weak and stable.