Monthly Silicon Carbide Market Report Dec 2023

2024-01-15 08:28:03 【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 5
3.2.1 Black Silicon Carbide 88%min 0-10mm FOB China 5
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 6
3.3.1 Black Silicon Carbide 88%min 0-10mm CIF Europe 6
4. Company News 6
4.1 Lanzhou Xinyongda halted black silicon carbide production 6
4.2 Ganluo Tengtai stopped their green silicon carbide production 6
4.3 Gansu Daoming suspended black silicon carbide production 6
4.4 Ningxia Hexing suspended black silicon carbide production 6
4.5 Gansu Hongding halted black silicon carbide production 6
4.6 Tianzhu Kanghong suspended black silicon carbide production 7
5 Producers Statistics 7
5.1 Chinese black silicon carbide producers' statistics 7
5.1.1 Chinese black silicon carbide producers' operating rate down by 16.71%MoM in December 7
5.1.2 Chinese black silicon carbide producers' output down by 30.43% MoM in December 7
5.1.3 Chinese black silicon carbide producers' inventory up by 7.57% MoM in December 8
5.2 Chinese Green silicon carbide producers' statistics 8
5.2.1 Chinese green silicon carbide producers' operating rate down 19.47% MoM in December 8
5.2.2 Chinese green silicon carbide producers' output down 42.85% MoM in December 8
5.2.3 Chinese green silicon carbide producers' inventory down by 2.32% MoM in December 9
6 Custom Statistics 9
6.1 China's silicon carbide export volume declined 23.11% MoM in Nov 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 firmed their prices of 88%min in December based on the high costs and high demand, while they cut their prices of 98%min to boost sales in December due to the sluggish market demand.

Most exporters firmed their prices of 88%min in late December due to the high market demand and the increased domestic prices while they cut their prices of 98%min in December due to the sluggish overseas market demand and reduced domestic prices.

Despite the stable export prices, given the increased sea freights, most European sellers increased their prices in the past month.

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

Most exporters insisted on their prices this month given the soft overseas buyers demand but firm domestic prices.

2 Economy and Policy

2.1 China to adjust import and export tariffs in 2024
China will adjust import and export tariffs rate on some commodities from January 1, 2024, the Customs Tariff Commission of the State Council said in a statement on Thursday. In 2024, China will implement provisional import tariffs that are lower than the most-favored-nation (MFN) rates on 1,010 commodities. Import tariffs on key resources, equipment and components that are domestically scarce, such as lithium chloride, cobalt carbonate, low arsenic fluorite and gas diffusion layers used for fuel cell, will be lowered to facilitate the development of the country's advanced manufacturing industries. In addition, China will continue to impose export tariffs on 107 commodities including ferrochrome, with 68 commodities subject to provisional tariffs.

The decreasing export tariffs would increase China's silicon carbide competitiveness.

2.2 China completes on-site work for third round of central environmental inspections
Five central environmental inspection teams were recently dispatched to Fujian, Henan, Hainan, Gansu and Qinghai to conduct the first batch of the third round of inspections. As of December 18, the on-site inspections carried out in the five provinces have been completed. The first batch of inspection teams have dealt with public complaints related to 13,718 cases, with 608 companies subject to penalty and a total of 180 officials held accountable for environmental damage.

The completion of inspection would release the supply of silicon carbide in Gansu and Qinghai.

3 Market Movements

3.1 Chinese Market
3.1.1 Black Silicon Carbide 88%min 0-10mm EXW China
In late December, the mainstream prices of Chinese black silicon carbide 88%min 0-10mm stood at RMB4,800-5,100/t (USD667-709/t) Inc-VAT EXW D/A 180 days, unchanged from late last month. Despite the weak demand, given the firm production costs, most producers firm their prices in December.

Black Silicon Carbide 88%min 0-10mm EXW China Price Trend from 2023-11-01 to 2023-12-31 (RMB/t)

3.1.2 Black Silicon Carbide 98%min 10-30mm EXW China
In late December, the prevailing prices of Chinese black silicon carbide 98%min 10-30cm hovered at RMB6,200-6,500/t (USD871-914/t) Inc-VAT EXW D/A 180 days, down by RMB400/t (USD56/t) from late last month. Most producers cut their prices to boost sales in December due to the sluggish market demand.

Black Silicon Carbide 98%min 10-30mm EXW China Price Trend from 2023-11-01 to 2023-12-31 (RMB/t)

3.1.3 Black silicon carbide 98%min F16-100 EXW China
In late December, the prevailing prices of Chinese black silicon carbide 98%min F16-100 hovered at RMB8,200-8,500/t (USD1,153-1,195/t) Inc-VAT EXW D/A 180 days, down by RMB400/t (USD56/t) from late last month. Most producers cut their prices to compete for orders in late December due to the sluggish market demand.

Black silicon carbide 98%min F16-100 EXW China Price Trend from 2023-11-01 to 2023-12-31 (RMB/t)

3.1.4 Green Silicon Carbide 98.5%min 10-30mm EXW China
In late December, the mainstream prices of Chinese green silicon carbide 98.5%min 10-30cm stood at RMB10,200-10,400/t (USD1,419-1,447/t) Inc-VAT EXW D/A 180 days, unchanged from late last month. Though the dropped petroleum coke prices, considering the stable market demand, most producers firmed their prices this month.

Green Silicon Carbide 98.5%min 10-30mm EXW China Price Trend from 2023-11-01 to 2023-12-31 (RMB/t)

3.1.5 Green Silicon Carbide 98.5%min F240 EXW China
In late December, the prevailing prices of Chinese green silicon carbide 98.5%min F240 stood at RMB14,000-14,500/t (USD1,948-2,017/t) Inc-VAT EXW D/A 180 days, unchanged from late last month. Given that the lump prices stay firm, and the stable downstream market, most producers firm their prices this month.

Green Silicon Carbide 98.5%min F240 EXW China Price Trend from 2023-11-01 to 2023-12-31 (RMB/t)

3.1.6 Green Silicon Carbide 98%min JIS2000 EXW China
In late December, the mainstream prices of Chinese green silicon carbide 98.5%min JIS2000 stood at RMB22,500-23,500/t (USD3,079-3,216/t) Inc-VAT EXW D/A 180 days, unchanged from late last month. Given that the lump prices stay firm, and the stable downstream market, most producers firm their prices this month.

Green Silicon Carbide 98%min JIS2000 EXW China Price Trend from 2023-11-01 to 2023-12-31 (RMB/t)

3.2 Chinese Export Market

3.2.1 Black Silicon Carbide 88%min 0-10mm FOB China
In late December, the mainstream export prices of Chinese black silicon carbide 88%min 0-10mm stood at USD790-820/t Inc-VAT FOB China, unchanged from late last month. Most exporters firmed their prices in late December due to the weak overseas market demand and but high domestic prices.

Black Silicon Carbide 88%min 0-10mm FOB China Price Trend from 2023-11-01 to 2023-12-31 (USD/t)

3.2.2 Black Silicon Carbide 98%min F16-100 FOB China
In late December, the mainstream export prices of Chinese black silicon carbide 98%min F16-100 stood at USD1,215-1,245/t Inc-VAT FOB China, down by USD45/t from late last month. Most exporters cut their prices in late December due to the weak overseas market demand and the dropped domestic prices.

Black Silicon Carbide 98%min F16-100 FOB China Price Trend from 2023-11-01 to 2023-12-31 (USD/t)

3.2.3 Green Silicon Carbide 98%min F240 FOB China
In late December, the mainstream export prices of Chinese green silicon carbide 98%min F240 stood at USD2,700-2,800/t Inc-VAT FOB China, unchanged from late last month. Most exporters firm their prices in December given the stable domestic prices and firm demand.

Green Silicon Carbide 98%min F240 FOB China Price Trend from 2023-11-01 to 2023-12-31 (USD/t)

3.2.4 Green Silicon Carbide 98%min JIS2000 FOB China
In late December, the mainstream export prices of Chinese green silicon carbide 98%min JIS2000 stood at USD3,730-3,830/t Inc-VAT FOB China, unchanged from late last month. Most exporters firm their prices in December given the stable domestic prices and firm demand.

Green Silicon Carbide 98%min JIS2000 FOB China Price Trend from 2023-11-01 to 2023-12-31 (USD/t)

3.3 International Market

3.3.1 Black Silicon Carbide 88%min 0-10mm CIF Europe
In late December, the mainstream prices of black silicon carbide 88%min 0-10mm hovered at EUR840-890/t CIF Europe, up by EUR5/t from late last month. Despite the stable export prices, given the increased sea freight, most European sellers lifted their prices in the past month.

Black Silicon Carbide 88%min 0-10mm Delivered Europe Price Trend from 2023-11-01 to 2023-12-31 (EUR/t)

4. Company News

4.1 Lanzhou Xinyongda halted black silicon carbide production
Lanzhou Xinyongda Silicon Carbide Co., Ltd., a black silicon carbide producer from Gansu, halted their black silicon carbide production on 20th November, and they produced about 600t last month. "Although we just resumed production in late September, as the environmental protectional team entered Gansu and they have to stop production to avoid the inspection.", a source from the company disclosed, noting that they produced about 600t last month. Having an annual production capacity of 15,000t, the company produced about 5,500t in the previous year and produced around 5,500t in the year of 2023. They hold an inventory of nearly 600t at the moment.

4.2 Ganluo Tengtai stopped their green silicon carbide production
As one of the major green silicon carbide producers in Sichuan, Gnaluoxian Tengtai Silicon Carbide Co., Ltd., halted the green silicon carbide production since 30th November and produced about 800t last month. "As the wet season finished, the supply of hydrate power stopped since late November. So we have to suspended production due to high costs", a source from the company reveals, noting that they had an output of nearly 800t in November. With an annual production capacity of 12,000t, they produced about 5,100t last year, and produced about 5,800t in 2023. They hold no stock at the moment.

4.3 Gansu Daoming suspended black silicon carbide production
Gansu Daoming Silicon Carbide Co., Ltd., as a major black silicon carbide producer in Gansu, halted black silicon carbide production in late November, with an output of nearly about 2,000t last month. "As we built a new plant in Tianshui, we sold our plant to a boss from Zhejiang. We suspended production in late November and would clear out of stock this year", a source from the company disclosed, noting that they produced about 2,000t in November. With an annual production capacity of 50,000t, they produced about 40,000t last year and produced about 35,000t so far this year. They hold an inventory of nearly 2,000t at the moment.

4.4 Ningxia Hexing suspended black silicon carbide production
A major black silicon carbide producer in China, Ningxia Hexing Carbon Materials Co., Ltd. suspended their black silicon carbide production about 10 days ago and they produced about 5,000t in November. "We just resumed production since 1st September but due to the sluggish market demand and fierce competition, we suspended production since 1st December ", a source from the company revealed, noting that they produced about 5,000t last month. Having a present annual production capacity of 75,000t, they produced about 54,000t last year and produced about 40,000t so far in 2023. They have an inventory of nearly 3,000t at the moment.

4.5 Gansu Hongding halted black silicon carbide production
A major black silicon carbide producer in China, Gansu Hongding Abrasive Technology Co., Ltd. halted black silicon carbide production in late November, with an output of nearly 4,000t last month. "We suspended production since 22nd November due to the environmental protectional inspection since early November", a source from the company reveals, noting that they produced about 4,000t in November. With an annual production capacity of 84,000t, they produced about 75,000t in the year of 2022 and produced about 70,000t so far this year. They have an inventory of nearly 4,000t at present.

4.6 Tianzhu Kanghong suspended black silicon carbide production
Tianzhu Kanghong Silicon Carbide Co., Ltd., a primary black silicon carbide producer in Gansu, suspended black silicon carbide production since 1st December, and they produced about 1,000t last month. Because of the sluggish market demand, we have accumulated large quantity of stocks and have to stop production since 1st December to control costs", a source from the company reveals, noting that they produced nearly 1,000t in December. With an annual production capacity of 30,000t, they produced almost 7,000t in 2022 and produced about 14,000t this year. Currently they hold an inventory of nearly 2,500t.

5 Producers Statistics

5.1 Chinese black silicon carbide producers' statistics

5.1.1 Chinese black silicon carbide producers' operating rate down by 16.71%MoM in December
In December 2023, Chinese black silicon carbide producers' operating rate was 38.18%, down by 16.71% MoM and down by 5.4% YoY.

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

In December 2023, the black silicon carbide producers' operating rate in Gansu was 35.35%, down by 17.32% MoM and up by 7.22% YoY; that in Ningxia was 39.97%, down 17.77% MoM and up by 1.95% YoY; that in other areas was 54.55%, unchanged MoM and down by 2.89% YoY.

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

5.1.2 Chinese black silicon carbide producers' output down by 30.43% MoM in December
In December 2023, Chinese black silicon carbide producers' output was 70,400t, down by 30.43% MoM and down by 8.33% YoY.

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

In December 2023, the black silicon carbide producers' output in Gansu was 34,500t, down by 32.87% MoM and up by 10.62% YoY; that in Ningxia was 22,500t, down by 30.77% MoM and up by 5.14% YoY; that in other areas was 5,000t, unchanged MoM and down by 70.23% YoY.

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

5.1.3 Chinese black silicon carbide producers' inventory up by 7.57% MoM in December
In December 2023, Chinese black silicon carbide producers' inventory was 89,500t, up by 7.57% MoM and up by 97.13% YoY.

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

In December 2023, the black silicon carbide producers' inventory in Gansu was 34,000t, down by 10.05% MoM and up by 67.48% YoY; that in Ningxia was 32,200t, up by 15.00% MoM and up by 117.56% YoY; that in other areas was 8,000t, up by 45.45% MoM and up by 22.33% YoY.

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

5.2 Chinese Green silicon carbide producers' statistics

5.2.1 Chinese green silicon carbide producers' operating rate down 19.47% MoM in December
In December 2023, Chinese green silicon carbide producers operating rate was 25.95%, down by 19.47% MoM and down by 3.00% YoY.

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

5.2.2 Chinese green silicon carbide producers' output down 42.85% MoM in December
In December 2023, Chinese green silicon carbide producers' output was 6,400t, down 42.85% MoM, down by 6.56% YoY.

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

5.2.3 Chinese green silicon carbide producers' inventory down by 2.32% MoM in December
In December 2023, Chinese green silicon carbide producers' inventory was 4,200t, down by 2.32% MoM and down by 44.73% YoY.

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

6 Custom Statistics

6.1 China's silicon carbide export volume declined 23.11% MoM in Nov 2023
In Nov 2023, China exported 24,084.48mt of silicon carbide, 29,470.91mt in the same period last year and 31,322.47mt in the previous month, down 18.28% YoY and down 23.11% MoM.
In Nov 2023, China exported USD29,509,385.00 worth of silicon carbide, USD35,870,037.00 in the same period last year and USD33,318,170.00 in the previous month, down 17.73% YoY and down 11.43% MoM. The average price was USD1,225.24/mt, USD1,217.13/mt in the same period last year and USD1,063.71/mt in the previous month.
In Jan-Nov 2023, China exported a total of 317,927.63mt of silicon carbide, 379,516.84mt in the same period last year, down 16.23% YoY.

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

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

In Nov 2023, the top three export destinations of silicon carbide for China were Japan, United States and Mexico.
China exported 5,133.07mt of silicon carbide to Japan, 5,926.34mt in the same period last year and 4,292.06mt in the previous month, down 13.39% YoY and up 19.59% MoM. The average price was USD1,663.69/mt, USD1,845.72/mt in the same period last year and USD2,254.96/mt in the previous month, down 9.86% YoY and down 26.21% MoM.
China exported 4,578.81mt of silicon carbide to United States, 7,435.81mt in the same period last year and 13,422.67mt in the previous month, down 38.42% YoY and down 65.89% MoM. The average price was USD865.30/mt, USD973.47/mt in the same period last year and USD548.23/mt in the previous month, down 11.10% YoY and up 57.85% MoM.
China exported 2,698.15mt of silicon carbide to Mexico, 4,526.00mt in the same period last year and 1,598.92mt in the previous month, down 40.39% YoY and up 68.75% MoM. The average price was USD767.63/mt, USD631.17/mt in the same period last year and USD822.09/mt in the previous month, up 21.71% YoY and down 6.57% 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.