Monthly Silicon Carbide Market Report Jul 2023

2023-08-14 08:46:37 【Print】

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Contents
1 Market Highlights 3
2 Economy and Policy 3
3 Market Movements 3
3.1 Chinese Market 3
3.1.1 Black Silicon Carbide 88%min 0-10mm EXW China 3
3.1.2 Black Silicon Carbide 98%min 10-30mm EXW China 3
3.1.3 Black silicon carbide 98%min F16-100 EXW China 4
3.1.4 Green Silicon Carbide 98.5%min 10-30mm EXW China 4
3.1.5 Green Silicon Carbide 98.5%min F240 EXW China 4
3.1.6 Green Silicon Carbide 98%min JIS2000 EXW China 4
3.2 Chinese Export Market 4
3.2.1 Black Silicon Carbide 88%min 0-10mm FOB China 4
3.2.2 Black Silicon Carbide 98%min F16-100 FOB China 5
3.2.3 Green Silicon Carbide 98%min F240 FOB China 5
3.2.4 Green Silicon Carbide 98%min JIS2000 FOB China 5
3.3 International Market 5
3.3.1 Black Silicon Carbide 88%min 0-10mm CIF Europe 5
4. Company News 6
4.1 Ningxia Xingertai to increase black silicon carbide production 6
4.2 Lanzhou Baochuan halted black silicon carbide production 6
4.3 Gansu Jiangang decreases black silicon carbide production 6
4.4 Ningnan Dongsheng begins green silicon carbide production 6
4.5 Tianzhu Yixin to resume black silicon carbide production 6
4.3 Tianzhu Qingfeng to resume production of black silicon carbide 7
5 Producers Statistics 7
5.1 Chinese black silicon carbide producers' statistics 7
5.1.1 Chinese black silicon carbide producers' operating rate up by 5.05%MoM in July 7
5.1.2 Chinese black silicon carbide producers' output up by 11.22% MoM in July 7
5.1.3 Chinese black silicon carbide producers' inventory down by 23.35% MoM in July 8
5.2 Chinese Green silicon carbide producers' statistics 8
5.2.1 Chinese green silicon carbide producers' operating rate down by 3.73% MoM in July 8
5.2.2 Chinese green silicon carbide producers' output down by 1.85% MoM in July 8
5.2.3 Chinese green silicon carbide producers' inventory up by 85.41% MoM in July 9
6 Custom Statistics 9
6.1 China's silicon carbide export volume declined 34.76% YoY in Jun 2023 9
7 Relevant Industry News 10
8 Market Outlook for Next Month 10
8.1 Chinese Market 10
8.1.1 Black silicon carbide 88%min 0-10mm EXW China 10
8.1.2 Black silicon carbide 98%min 10-30cm EXW China 10
8.1.3 Black silicon carbide 98%min F16-100 EXW China 10
8.1.4 Green silicon carbide 98.5%min 10-30cm EXW China 10
8.1.5 Green silicon carbide 98%min F240 EXW China 10
8.1.6 Green silicon carbide 98%min JIS2000 EXW China 10
8.2 Chinese export Market 10
8.2.1 Black silicon carbide 88%min 0-10mm FOB China 10
8.2.2 Black silicon carbide 98%min F16-100 FOB China 10
8.2.3 Green silicon carbide 98%min F240 FOB China 10
8.2.4 Green silicon carbide 98%min JIS2000 FOB China 11
8.3 International Market 11
8.3.1 Black silicon carbide 88%min 0-10mm CIF Europe 11

1 Market Highlights

Black silicon carbide
Most producers cut their prices to boost sales in July due to the sluggish Market demand.

Most exporters cut their prices down in July due to the sluggish overseas market demand and reduced domestic prices.

Green silicon carbide
Given the dropped petroleum coke prices and the sluggish market demand, most producers cut their prices to boost sales.

Most exporters cut their prices this month given the soft overseas buyers' demand and dropped domestic prices.

2 Economy and Policy

2.1 China H1 foreign trade exceeds 20 trillion yuan for first time
China's total goods imports and exports volume rose by 2.1% year-on-year to 20.1 trillion yuan (2.81 trillion U.S. dollars) in the first half of 2023, and it is the first time the country's foreign trade volume exceeded the 20 trillion yuan mark in the January-June period, according to the General Administration of Customs. In the first six months, China's exports hit 11.46 trillion yuan (1.6 trillion U.S. dollars), up by 3.7% YoY, while imports slightly declined by 0.1% YoY to 8.64 trillion yuan (1.21 trillion U.S. dollars).

The increasing export growth shows market confidence to China's economy.

2.2 China to scale up medium and long-term lending toward manufacturing sector
China is ready to unleash the potential of consumption further and create a consumption supply system of high-quality, said an official from the National Development and Reform Commission (NDRC) at a news conference held on July 17. According to NDRC, new efforts will be put in place to stabilize and expand investment in manufacturing. Efforts will also be made in providing more medium- and long-term loans towards manufacturing to realize high-quality growth of the sector.

This policy boost the long-term development of manufacture industry of China.

3 Market Movements

3.1 Chinese Market
3.1.1 Black Silicon Carbide 88%min 0-10mm EXW China
In late July, the mainstream prices of Chinese black silicon carbide 88%min 0-10mm stood at RMB4,900-5,200/t (USD677-718/t) Inc-VAT EXW D/A 180 days, down by RMB200/t (USD28/t) from late last month. Most producers cut their prices to boost sales in July due to the sluggish market demand.

Black Silicon Carbide 88%min 0-10mm EXW China Price Trend from 2023-06-01 to 2023-07-30 (RMB/t)

3.1.2 Black Silicon Carbide 98%min 10-30mm EXW China
In late July, the prevailing prices of Chinese black silicon carbide 98%min 10-30cm hovered at RMB7,100-7,400/t (USD981-1,022/t) Inc-VAT EXW D/A 180 days, down by RMB200/t (USD28/t) from late last month. Most producers cut their prices to boost sales in July due to the sluggish market demand.

Black Silicon Carbide 98%min 10-30mm EXW China Price Trend from 2023-06-01 to 2023-07-30 (RMB/t)

3.1.3 Black silicon carbide 98%min F16-100 EXW China
In late July, the prevailing prices of Chinese black silicon carbide 98%min F16-100 hovered at RMB9,100-9,400/t (USD1,257-1,298/t) Inc-VAT EXW D/A 180 days, down by RMB200/t (USD28/t) from late last month. Most producers cut their prices to compete for orders in late July due to the sluggish market demand.

Black silicon carbide 98%min F16-100 EXW China Price Trend from 2023-06-01 to 2023-07-30 (RMB/t)

3.1.4 Green Silicon Carbide 98.5%min 10-30mm EXW China
In late July, the mainstream prices of Chinese green silicon carbide 98.5%min 10-30cm stood at RMB10,800-11,000/t (USD1,1492-1,519/t) Inc-VAT EXW D/A 180 days, down by RMB400/t (USD56/t) from late last month. Given the dropped petroleum coke prices and the sluggish market demand, most producers cut their prices to boost sales.

Green Silicon Carbide 98.5%min 10-30mm EXW China Price Trend from 2023-06-01 to 2023-07-30 (RMB/t)

3.1.5 Green Silicon Carbide 98.5%min F240 EXW China
In late July, the prevailing prices of Chinese green silicon carbide 98.5%min F240 stood at RMB15,800-16,300/t (USD2,183-2,252/t) Inc-VAT EXW D/A 180 days, down by RMB700/t (USD96/t) from late last month. Given the dropped lump prices and the sluggish market demand, most producers cut their prices to boost sales.

Green Silicon Carbide 98.5%min F240 EXW China Price Trend from 2023-06-01 to 2023-07-30 (RMB/t)

3.1.6 Green Silicon Carbide 98%min JIS2000 EXW China
In late July, the mainstream prices of Chinese green silicon carbide 98.5%min JIS2000 stood at RMB22,900-23,900/t (USD3,164-3,302/t) Inc-VAT EXW D/A 180 days, down by RMB100/t (USD14/t) from late last month. Given the dropped lump prices and the sluggish market demand, most producers cut their prices to compete for orders.

Green Silicon Carbide 98%min JIS2000 EXW China Price Trend from 2023-06-01 to 2023-07-30 (RMB/t)

3.2 Chinese Export Market

3.2.1 Black Silicon Carbide 88%min 0-10mm FOB China
In late July, the mainstream export prices of Chinese black silicon carbide 88%min 0-10mm stood at USD790-820/t Inc-VAT FOB China, down by USD30/t from late last month. Most exporters cut their prices down in late July due to the sluggish market demand and the dropped domestic prices.

Black Silicon Carbide 88%min 0-10mm FOB China Price Trend from 2023-06-01 to 2023-07-30 (USD/t)

3.2.2 Black Silicon Carbide 98%min F16-100 FOB China
In late July, the mainstream export prices of Chinese black silicon carbide 98%min F16-100 stood at USD1,320-1,350/t Inc-VAT FOB China, down by USD40/t from late last month. Most exporters cut their prices down due to the sluggish market demand and the dropped domestic prices.

Black Silicon Carbide 98%min F16-100 FOB China Price Trend from 2023-06-01 to 2023-07-30 (USD/t)

3.2.3 Green Silicon Carbide 98%min F240 FOB China
In late July, the mainstream export prices of Chinese green silicon carbide 98%min F240 stood at USD2,780-2,880/t Inc-VAT FOB China, down by USD120/t from late last month. Given the sluggish overseas market demand and the dropped domestic prices, most exporters cut their prices to boost sales.

Green Silicon Carbide 98%min F240 FOB China Price Trend from 2023-06-01 to 2023-07-30 (USD/t)

3.2.4 Green Silicon Carbide 98%min JIS2000 FOB China
In late July, the mainstream export prices of Chinese green silicon carbide 98%min JIS2000 stood at USD3,780-3,880/t Inc-VAT FOB China, down by USD120/t from late last month. Given the sluggish overseas market demand and the dropped domestic prices, most exporters cut their prices to boost sales.

Green Silicon Carbide 98%min JIS2000 FOB China Price Trend from 2023-06-01 to 2023-07-30 (USD/t)

3.3 International Market

3.3.1 Black Silicon Carbide 88%min 0-10mm CIF Europe
In late July, the mainstream prices of black silicon carbide 88%min 0-10mm hovered at EUR835-885/t CIF Europe, down by EUR25/t from late last month. Given the decreased export prices and lower freight, most European sellers cut their prices to compete for orders.

Black Silicon Carbide 88%min 0-10mm Delivered Europe Price Trend from 2023-06-01 to 2023-07-30 (EUR/t)

4. Company News

4.1 Ningxia Xingertai to increase black silicon carbide production
A major black silicon carbide producer in China, Ningxia Xing'ertai New Materials Co., Ltd., increased their black silicon carbide production since July, aiming to produce about 7,000t this month, increased 100% MoM. We resumed production in late March with only one furnace on, and decided to run the second furnace since July. Before that, we have been in suspension for three years, a source from the company revealed, noting that they expected to produce about 7,000t this month. With a current annual production capacity of 150,000t, the company had no output in the previous year and they produced about 10,000t so far in 2023. They had a stock of nearly 3,500t presently.

4.2 Lanzhou Baochuan halted black silicon carbide production
Lanzhou Baochuan Silicon Carbide Co., Ltd. is a black silicon carbide producer from Gansu. They stopped black silicon carbide production on 30th June because of the sluggish market and high inventory volume. They produced about 900t in June. We have not closed deal in the past two weeks owing to the sluggish market demand. And we could only sell only one third of our products, so we decided to halted production to avoid inventory accumulation, a source from the company revealed, noting that they produced about 900t in June. With an annual production capacity of 12,000t, the company had an output of almost 4,000t in 2022 due to furnace upgrading and produced about 6,000t so far in 2023. Currently they hold an inventory of nearly 3,000t.

4.3 Gansu Jiangang decreases black silicon carbide production
A major black silicon carbide producer in China, Gnasu Jiangang Silicon carbide Co., Ltd., decreased their black silicon carbide production volume since July, and they would produce about 2,000t this month, decreased 50% from last month. Given the sluggish market demand, we decided to close one furnace since July and cut our monthly production volume from 4,000t to 2,000t to avoid inventory accumulation, an insider from the company said, noting that they plan to produce around 2,000t in July. With a current annual production capacity of 74,000t, the company produced about 13,600t in 2022 and they produced about 28,000t so far this year. They had a stock of nearly 2,000t at the moment.

4.4 Ningnan Dongsheng begins green silicon carbide production
Ningnan Dongsheng Silicon Carbide Co., Ltd., as a new green silicon carbide producer in Sichuan, put into green silicon carbide production since 15th July, and predict to have an output of nearly 300t this month. We used to be a black silicon carbide producer and suspended for over a year due to the sluggish market demand. And we transferred our production line into green silicon carbide production this year for better profit and start production since 15th July, a source from the company disclosed, noting that they would produce about 300t in July and expect an output of nearly 600t in August. With a current production capacity of 12,000tpy, the company expect to produce about 4,000t this year. They hold stock of nearly 100t at present.

4.5 Tianzhu Yixin to resume black silicon carbide production
Tianzhu Yixin Silicon Carbide Co., Ltd., a black silicon carbide producer in Gansu. They plan to resume black silicon carbide production in early August after the completion of environmental protectional equipment upgrading. They plan to produce about 1,000t in August. We suspended production since early April to upgrade our environmental protectional equipment according to the requirement of local government. And now we finished the construction of the equipment and plan to resume production in early August, a source from the company revealed, noting that they would produce about 1,000t next month. With a current production capacity of 40,000tpy, the company produced only about 5,000t in 2022 due to furnace upgrading and they plan to produce about 15,000t this year. They hold an inventory of nearly 400t at present.

4.3 Tianzhu Qingfeng to resume production of black silicon carbide
Tianzhu Qingfeng Silicon Carbide Co., Ltd., a primary black silicon carbide producer in Gansu, plans to resume their black silicon carbide production in early August after the completion of their furnace upgrading project, expecting an output of nearly 1,000t next month. We halted production in late April in order to upgrade our furnace as well as the dim end market, a source from the company revealed, adding that they now upgraded one furnace from 16,500KVA to 30,000KVA, while another furnace of 22,500KVA stay unchanged. They expect to produce about 1,000t next month for pilot production. With an annual production capacity of 60,000t, they produced around 23,000t in 2022 and produced about 11,000t so far this year. They had only 300t inventory at the moment, decreased by 400t MoM.

5 Producers Statistics

5.1 Chinese black silicon carbide producers' statistics

5.1.1 Chinese black silicon carbide producers' operating rate up by 5.05%MoM in July
In July 2023, Chinese black silicon carbide producers' operating rate was 44.76%%, up by 5.05% MoM and down by 8.25% YoY.

Chinese black silicon carbide producers' operating rate from July 2022 to July 2023 (%)

Chinese black silicon carbide producers' operating rate by province from July 2022 to July 2023 (%)

In July 2023, the black silicon carbide producers' operating rate in Gansu was 31.91%, down by 0.87% MoM and down by 23.62% YoY; that in Ningxia was 61.77%, up by 16.39% MoM and up by 4.21% YoY; that in other areas was 54.43%, up by 2.30% MoM and up by 45.50% YoY.

5.1.2 Chinese black silicon carbide producers' output up by 11.22% MoM in July
In July 2023, Chinese black silicon carbide producers' output was 84,200t, up by 11.22% MoM and down by 10.40% YoY.

Chinese black silicon carbide producers' output from July 2022 to July 2023 (t)

In July 2023, the black silicon carbide producers' output in Gansu was 31,800t, up by 0.08% MoM and down by 36.52% YoY; that in Ningxia was 35,800t, up by 36.12% MoM and up by 7.51% YoY; that in other areas was 16,600t, up by 4.40% MoM and up by 156.00% YoY.

Chinese black silicon carbide producers' output by province from July 2022 to July 2023 (t)

5.1.3 Chinese black silicon carbide producers' inventory down by 23.35% MoM in July
In July 2023, Chinese black silicon carbide producers' inventory was 73,200t, down by 23.35% MoM and down by 16.62% YoY.

Chinese black silicon carbide producers' inventory from July 2022 to July 2023 (t)

In July 2023, the black silicon carbide producers' inventory in Gansu was 31,200t, down by 35.26% MoM and down by 37.97% YoY; that in Ningxia was 25,100t, down by 13.14% MoM and up by 25.15% YoY; that in other areas was 16,900t, down by 8.15% MoM and up by 207.27% YoY.

Chinese black silicon carbide producers' inventory by province from July 2022 to July 2023 (t)

5.2 Chinese Green silicon carbide producers' statistics

5.2.1 Chinese green silicon carbide producers' operating rate down by 3.73% MoM in July
In July 2023, Chinese green silicon carbide producers operating rate was 42.99%, down by 3.73% MoM and up by 5.88% YoY.

Chinese green silicon carbide producers' operating rate from July 2022 to July 2023 (t)

5.2.2 Chinese green silicon carbide producers' output down by 1.85% MoM in July
In July 2023, Chinese green silicon carbide producers' output was 10,600t, down by 1.85% MoM, up by 27.71% YoY.

Chinese green silicon carbide producers' output from July 2022 to July 2023 (%)

5.2.3 Chinese green silicon carbide producers' inventory up by 85.41% MoM in July
In July 2023, Chinese green silicon carbide producers' inventory was 10,600t, up by 10.41% MoM and up by 16.94% YoY.

Chinese green silicon carbide producers' inventory from July 2023 to July 2023 (t)

6 Custom Statistics

6.1 China's silicon carbide export volume declined 34.76% YoY in Jun 2023
In Jun 2023, China exported 25,378.31mt of silicon carbide, 38,897.06mt in the same period last year and 36,049.17mt in the previous month, down 34.76% YoY and down 29.60% MoM.
In Jun 2023, China exported USD34,695,802.00 worth of silicon carbide, USD54,645,961.00 in the same period last year and USD40,087,508.00 in the previous month, down 36.51% YoY and down 13.45% MoM. The average price was USD1,367.14/mt, USD1,404.89/mt in the same period last year and USD1,112.02/mt in the previous month.
In Jan-Jun 2023, China exported a total of 177,607.93mt of silicon carbide, 199,121.33mt in the same period last year, down 10.80% YoY.
China's export volume of silicon carbide in previous 13 months

China's export price of silicon carbide in previous 13 months

In Jun 2023, the top three export destinations of silicon carbide for China were Japan, Mexico and South Korea.
China exported 5,631.15mt of silicon carbide to Japan, 4,782.17mt in the same period last year and 5,002.55mt in the previous month, up 17.75% YoY and up 12.57% MoM. The average price was USD1,989.74/mt, USD2,242.05/mt in the same period last year and USD2,035.68/mt in the previous month, down 11.24% YoY and down 2.26% MoM.
China exported 4,068.51mt of silicon carbide to Mexico, 774.50mt in the same period last year and 1,003.11mt in the previous month, up 425.31% YoY and up 305.59% MoM. The average price was USD806.44/mt, USD1,751.86/mt in the same period last year and USD977.73/mt in the previous month, down 54.00% YoY and down 17.59% MoM.
China exported 3,470.32mt of silicon carbide to South Korea, 4,523.03mt in the same period last year and 2,143.47mt in the previous month, down 23.27% YoY and up 61.90% MoM. The average price was USD1,182.31/mt, USD1,371.90/mt in the same period last year and USD1,301.25/mt in the previous month, down 13.85% YoY and down 9.15% MoM.
China's export volume of silicon carbide to top three countries in previous 13 months

China's export price of silicon carbide to top three countries in previous 13 months

7 Relevant Industry News

7.1 Petroleum coke
The petroleum coke price decrease in the past month, which lead to the reduced production costs of green silicon carbide.

7.2 Anthracite
The price of anthracite keep stable in the past month, which lead to the firm production costs of black silicon carbide.

7.3 Carbon electrode
That the price of carbon electrode moved down in the past month lead to the reduced production costs of silicon carbide.

8 Market Outlook for Next Month

8.1 Chinese Market

8.1.1 Black silicon carbide 88%min 0-10mm EXW China
Although the Market demand for black silicon carbide would stay soft next month, given the high production costs, the prices of this product would stay stable.

8.1.2 Black silicon carbide 98%min 10-30cm EXW China
Despite that the Market demand for black silicon carbide would stay soft in the following month, considering the raised production costs, the prices of this product would stay firm.

8.1.3 Black silicon carbide 98%min F16-100 EXW China
Despite that the Market demand for black silicon carbide would stay soft next month, in view of the high production costs, the prices of this product would keep firm.

8.1.4 Green silicon carbide 98.5%min 10-30cm EXW China
Considering that the petroleum coke prices in Xinjiang stay high this month, the prices of green silicon carbide would stay firm in the following month.

8.1.5 Green silicon carbide 98%min F240 EXW China
Given that the petroleum coke prices in Xinjiang remain firm in the past month, the prices of green silicon carbide would keep steady next month.

8.1.6 Green silicon carbide 98%min JIS2000 EXW China
In view of the high prices of the petroleum coke prices in Xinjiang this month, the prices of green silicon carbide would keep unchanged next month.

8.2 Chinese export Market

8.2.1 Black silicon carbide 88%min 0-10mm FOB China
Considering the firm domestic prices, the export prices would flatten next month.

8.2.2 Black silicon carbide 98%min F16-100 FOB China
In view of the stable domestic prices, the export prices would keep stable next month.

8.2.3 Green silicon carbide 98%min F240 FOB China
In spite of the soft overseas Market demand, given the high domestic prices, the export prices would stay steady next month.

8.2.4 Green silicon carbide 98%min JIS2000 FOB China
Although the overseas Market demand remains soft, given the high domestic prices, the export prices would stay stable next month.

8.3 International Market

8.3.1 Black silicon carbide 88%min 0-10mm CIF Europe
Given the stable prices in Chinese export Market, the prices in European Market would go steady in the following month.