Monthly Silicon Carbide Market Report May 2023

2023-06-12 08:44:14 【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 Baijiachangwei halted production of black silicon carbide 6
4.2 Lanzhou Xinyongda halted production of black silicon carbide 6
4.3 Tianzhu Juxin suspends black silicon carbide production 6
4.4 Tianzhu Zhonglixinjia halts black silicon carbide production 6
4.4 Hualong Yongsheng plan to resume production of black silicon carbide 6
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 5.83%MoM in May 7
5.1.2 Chinese black silicon carbide producers' output down by 8.20% MoM in May 7
5.1.3 Chinese black silicon carbide producers' inventory up by 0.54% MoM in May 7
5.2 Chinese Green silicon carbide producers' statistics 8
5.2.1 Chinese green silicon carbide producers' operating rate up by 3.46% MoM in May 8
5.2.2 Chinese green silicon carbide producers' output up by 7.92% MoM in May 8
5.2.3 Chinese green silicon carbide producers' inventory up by 7.5% MoM in May 8
6 Custom Statistics 9
6.1 China's silicon carbide export volume declined 37.95% YoY in Apr 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 10
8.3 International Market 10
8.3.1 Black silicon carbide 88%min 0-10mm CIF Europe 10

1 Market Highlights

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

Most exporters cut their prices down in May 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 Ministry of Commerce: China's outward non-financial direct investment up by 26.6% YOY in Jan-Apr
On May 22, the Ministry of Commerce released the data showing that from January to April 2023, China's outward investment continued to grow, with outward non-financial direct investment reaching RMB289.29 billion, a year-on-year increase of 26.6% (equivalent to USD42.19 billion, a year-on-year increase of 17.6%). The non-financial direct investment of Chinese enterprises in the countries along the "Belt and Road" recorded USD7.53 billion, up bu 9% YOY, accounting for 17.8% of the total amount in the same period.

The increasing investment 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 May 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 May, the mainstream prices of Chinese black silicon carbide 88%min 0-10mm stood at RMB5,500-5,800/t (USD774-816/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 May due to the sluggish market demand.

Black Silicon Carbide 88%min 0-10mm EXW China Price Trend from 2023-04-01 to 2023-05-30 (RMB/t)

3.1.2 Black Silicon Carbide 98%min 10-30mm EXW China
In late May, the prevailing prices of Chinese black silicon carbide 98%min 10-30cm hovered at RMB7,500-7,800/t (USD1,055-1,097/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 May due to the sluggish market demand.

Black Silicon Carbide 98%min 10-30mm EXW China Price Trend from 2023-04-01 to 2023-05-30 (RMB/t)

3.1.3 Black silicon carbide 98%min F16-100 EXW China
In late May, the prevailing prices of Chinese black silicon carbide 98%min F16-100 hovered at RMB9,500-9,800/t (USD1,337-1,379/t) Inc-VAT EXW D/A 180 days, down by RMB500/t (USD70/t) from late last month. Most producers cut their prices to compete for orders in late May due to the sluggish market demand.

Black silicon carbide 98%min F16-100 EXW China Price Trend from 2023-04-01 to 2023-05-30 (RMB/t)

3.1.4 Green Silicon Carbide 98.5%min 10-30mm EXW China
In late May, the mainstream prices of Chinese green silicon carbide 98.5%min 10-30cm stood at RMB11,800-12,000/t (USD1,660-1,688/t) Inc-VAT EXW D/A 180 days, down by RMB1,000/t (USD141/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 2023-04-01 to 2023-05-30 (RMB/t)

3.1.5 Green Silicon Carbide 98.5%min F240 EXW China
In late May, the prevailing prices of Chinese green silicon carbide 98.5%min F240 stood at RMB17,500-18,000/t (USD2,462-2,532/t) Inc-VAT EXW D/A 180 days, down by RMB1,500/t (USD211/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 2023-04-01 to 2023-05-30 (RMB/t)

3.1.6 Green Silicon Carbide 98%min JIS2000 EXW China
In late May, the mainstream prices of Chinese green silicon carbide 98.5%min JIS2000 stood at RMB23,500-24,500/t (USD3,306-3,447/t) Inc-VAT EXW D/A 180 days, down by RMB1,500/t (USD211/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 2023-04-01 to 2023-05-30 (RMB/t)

3.2 Chinese Export Market

3.2.1 Black Silicon Carbide 88%min 0-10mm FOB China
In late May, the mainstream export prices of Chinese black silicon carbide 88%min 0-10mm stood at USD900-930/t Inc-VAT FOB China, down by USD30/t from late last month. Most exporters cut their prices down in late May due to the sluggish market demand and the dropped domestic prices.

Black Silicon Carbide 88%min 0-10mm FOB China Price Trend from 2023-04-01 to 2023-05-30 (USD/t)

3.2.2 Black Silicon Carbide 98%min F16-100 FOB China
In late May, the mainstream export prices of Chinese black silicon carbide 98%min F16-100 stood at USD1,420-1,450/t Inc-VAT FOB China, down by USD80/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 2023-04-01 to 2023-05-30 (USD/t)

3.2.3 Green Silicon Carbide 98%min F240 FOB China
In late May, the mainstream export prices of Chinese green silicon carbide 98%min F240 stood at USD3,000-3,150/t Inc-VAT FOB China, down by USD150/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 2023-04-01 to 2023-05-30 (USD/t)

3.2.4 Green Silicon Carbide 98%min JIS2000 FOB China
In late May, the mainstream export prices of Chinese green silicon carbide 98%min JIS2000 stood at USD3,900-4,000/t Inc-VAT FOB China, down by USD250/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 2023-04-01 to 2023-05-30 (USD/t)

3.3 International Market

3.3.1 Black Silicon Carbide 88%min 0-10mm CIF Europe
In late May, the mainstream prices of black silicon carbide 88%min 0-10mm hovered at EUR950-1,000/t CIF Europe, up by EUR60/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 2023-04-01 to 2023-05-30 (EUR/t)

4. Company News

4.1 Baijiachangwei halted production of black silicon carbide
Gansu Baijiachangwei Alloy Co., Ltd., a primary black silicon carbide producer in Gansu, stopped black silicon carbide production in late April due to the weak market demand, with an output of nearly 1,900t last month. They halted production in late April due to the sluggish market demand and high stocking pressure, a source from the company revealed, adding that they already suspended one furnace in late March due to weak demand, but the market still in low position after that so they decided to reach full suspension to avoid inventory accumulation. Having an annual production capacity of 55,000t, they produced around 23,000t in 2022 and estimate to keep same production scale this year in light of the weak demand. They had about 3,500t inventory at the moment, increased by 50% MoM.

4.2 Lanzhou Xinyongda halted production of black silicon carbide
A main black silicon carbide producer from Gansu, Lanzhou Xinyongda Silicon Carbide Co., Ltd. halted their production of black silicon carbide in early May due to the terrible sales and high inventory pressure, with an output of nearly 800t last month. They just resumed production in late March and produced two furnaces of around 800t of black silicon carbide and stopped production in early May given the sluggish demand, an insider from the company disclosed, noting that received no inquiries at all in the past month and only closed a few deals to export market by regular clients. With a production capacity of 15,000tpy, the company produced only about 5,500t in 2022 because of furnace upgrading and they plan to keep same production scale this year given the sluggish demand. They hold an inventory of nearly 800t at present.

4.3 Tianzhu Juxin suspends black silicon carbide production
A main black silicon carbide producer in Gansu, Tianzhu Juxin Silicon Carbide Co., Ltd. suspended their black silicon carbide production on 10th May because of sluggish market demand, produced about 300t in May. They have not received any inquiries in the past few weeks due to weak demand so that we decided to halt production since 10th May to stop inventory accumulation, an insider from the company stated, noting that they produced about 300t this month and expect to resume production in July if the market demand recovered at that time. With a current production capacity of 30,000tpy, the company produced about 5,000t in the previous year because of environmentally friendly equipment upgrading and they plan to produce about 10,000t in the year of 2023. They hold an inventory of nearly 1,500t at the moment.

4.4 Tianzhu Zhonglixinjia halts black silicon carbide production
A black silicon carbide producer from Gansu, Tianzhu Zhonglixinjia Refractories Co., Ltd. halted their black silicon carbide production a week ago due to the stagnant market demand, with an output of nearly 600t this month. We hardly closed deals in the past month due to the stagnant market so we decide to halted production since a week ago to control costs, an insider from the company disclosed, noting that they still keep their processing line in operation, and produced about 600t in May. With a current production capacity of 30,000tpy, the company produced only about 15,600t in the previous year and they plan to keep same production scale this year. They hold an inventory of nearly 1,200t at present.

4.4 Hualong Yongsheng plan to resume production of black silicon carbide
Hualong Yongsheng New materials Co., Ltd., a main black silicon carbide producer in Qinghai, plan to resume black silicon carbide production within two weeks, expecting an output of nearly 800t in the first month. They have been halted production for years due to the sluggish market demand and environmental protectional pressure. But this year we upgraded our environmental protectional equipment and plan to start in mid-June, a source from the company revealed, adding that they plan to produce about 800t in the first month. With an annual production capacity of 25,000t, they had no output in 2022 and estimate to produce about 10,000t this year.
They had no inventory at the moment.

5 Producers Statistics

5.1 Chinese black silicon carbide producers' statistics

5.1.1 Chinese black silicon carbide producers' operating rate down by 5.83%MoM in May
In May 2023, Chinese black silicon carbide producers' operating rate was 45.52%%, down by 5.83% MoM and down by 11.02% YoY.

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

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

In May 2023, the black silicon carbide producers' operating rate in Gansu was 31.43%, down by 7.80% MoM and down by 20.27% YoY; that in Ningxia was 56.54%, down by 0.99% MoM and down by 2.37% YoY; that in other areas was 68.85%, down by 6.56% MoM and up by 17.06% YoY.

5.1.2 Chinese black silicon carbide producers' output down by 8.20% MoM in May
In May 2023, Chinese black silicon carbide producers' output was 86,100t, down by 8.20% MoM and down by 13.98% YoY.

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

In May 2023, the black silicon carbide producers' output in Gansu was 30,800t, down by 14.21% MoM and up by 32.31% YoY; that in Ningxia was 34,300t, down by 1.72% MoM and down by 4.19% YoY; that in other areas was 21,000t, down by 8.69% MoM and up by 61.53% YoY.

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

5.1.3 Chinese black silicon carbide producers' inventory up by 0.54% MoM in May
In May 2023, Chinese black silicon carbide producers' inventory was 111,600t, up by 0.54% MoM and up by 34.46% YoY.

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

In May 2023, the black silicon carbide producers' inventory in Gansu was 62,200t, up by 1.80% MoM and up by 55.11% YoY; that in Ningxia was 26,900t, up by 5.28% MoM and up by 25.70% YoY; that in other areas was 22,500t, up by 4.65% MoM and up by 55.17% YoY.

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

5.2 Chinese Green silicon carbide producers' statistics

5.2.1 Chinese green silicon carbide producers' operating rate up by 3.46% MoM in May
In May 2023, Chinese green silicon carbide producers operating rate was 47.15%, up by 3.46% MoM and up by 27.25% YoY.

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

5.2.2 Chinese green silicon carbide producers' output up by 7.92% MoM in May
In May 2023, Chinese green silicon carbide producers' output was 10,900t, up by 7.92% MoM, up by 144.94% YoY.

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

5.2.3 Chinese green silicon carbide producers' inventory up by 7.5% MoM in May
In May 2023, Chinese green silicon carbide producers' inventory was 8,600t, up by 7.5% MoM and up by 43.33% YoY.

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

6 Custom Statistics

6.1 China's silicon carbide export volume declined 37.95% YoY in Apr 2023
In Apr 2023, China exported 24,039.84mt of silicon carbide, 38,740.95mt in the same period last year and 37,781.10mt in the previous month, down 37.95% YoY and down 36.37% MoM.
In Apr 2023, China exported USD35,507,466.00 worth of silicon carbide, USD44,991,589.00 in the same period last year and USD46,700,901.00 in the previous month, down 21.08% YoY and down 23.97% MoM. The average price was USD1,477.03/mt, USD1,161.34/mt in the same period last year and USD1,236.09/mt in the previous month.
In Jan-Apr 2023, China exported a total of 116,180.44mt of silicon carbide, 123,086.61mt in the same period last year, down 5.61% YoY.
China's export volume of silicon carbide in previous 13 months

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

In Apr 2023, the top three export destinations of silicon carbide for China were Japan, United States and South Korea.
China exported 4,824.90mt of silicon carbide to Japan, 4,917.06mt in the same period last year and 5,059.47mt in the previous month, down 1.87% YoY and down 4.64% MoM. The average price was USD2,177.27/mt, USD2,235.30/mt in the same period last year and USD2,263.59/mt in the previous month, down 2.60% YoY and down 3.84% MoM.
China exported 4,260.18mt of silicon carbide to United States, 17,515.18mt in the same period last year and 13,017.56mt in the previous month, down 75.68% YoY and down 67.27% MoM. The average price was USD932.86/mt, USD760.95/mt in the same period last year and USD767.13/mt in the previous month, up 22.60% YoY and up 21.64% MoM.
China exported 3,381.56mt of silicon carbide to South Korea, 2,193.63mt in the same period last year and 3,139.20mt in the previous month, up 54.15% YoY and up 7.72% MoM. The average price was USD1,322.64/mt, USD1,419.68/mt in the same period last year and USD1,301.08/mt in the previous month, down 6.83% YoY and up 1.69% 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.