Monthly Silicon Carbide Market Report Aug 2023

2023-09-12 08:23:57 【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 Lanzhou Xinyongda stopped black silicon carbide production 6
4.2 Tianzhu Wenhong resumed black silicon carbide production 6
4.3 Tianzhu Guangfu resumed black silicon carbide production 6
4.4 Lanzhou Baochuan to increase black silicon carbide production capacity 6
5 Producers Statistics 6
5.1 Chinese black silicon carbide producers' statistics 6
5.1.1 Chinese black silicon carbide producers' operating rate up by 1.49%MoM in August 6
5.1.2 Chinese black silicon carbide producers' output up by 3.24% MoM in August 7
5.1.3 Chinese black silicon carbide producers' inventory up by 5.73% MoM in August 7
5.2 Chinese Green silicon carbide producers' statistics 8
5.2.1 Chinese green silicon carbide producers' operating rate down by 0.81% MoM in August 8
5.2.2 Chinese green silicon carbide producers' output down by 1.86% MoM in August 8
5.2.3 Chinese green silicon carbide producers' inventory down by 5.66% MoM in August 8
6 Custom Statistics 9
6.1 China's silicon carbide export volume declined 32.18% YoY in Jul 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 August due to the sluggish Market demand.

Most exporters cut their prices down in August 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 August 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 August, the mainstream prices of Chinese black silicon carbide 88%min 0-10mm stood at RMB4,800-5,100/t (USD666-707/t) Inc-VAT EXW D/A 180 days, down by RMB100/t (USD14/t) from late last month. Most producers cut their prices to boost sales in August due to the sluggish market demand.

Black Silicon Carbide 88%min 0-10mm EXW China Price Trend from 2023-07-01 to 2023-08-31 (RMB/t)

3.1.2 Black Silicon Carbide 98%min 10-30mm EXW China
In late August, the prevailing prices of Chinese black silicon carbide 98%min 10-30cm hovered at RMB6,900-7,200/t (USD957-999/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 August due to the sluggish market demand.

Black Silicon Carbide 98%min 10-30mm EXW China Price Trend from 2023-07-01 to 2023-08-31 (RMB/t)

3.1.3 Black silicon carbide 98%min F16-100 EXW China
In late August, the prevailing prices of Chinese black silicon carbide 98%min F16-100 hovered at RMB9,000-9,300/t (USD1,245-1,286/t) Inc-VAT EXW D/A 180 days, down by RMB100/t (USD14/t) from late last month. Most producers cut their prices to compete for orders in late August due to the sluggish market demand.

Black silicon carbide 98%min F16-100 EXW China Price Trend from 2023-07-01 to 2023-08-31 (RMB/t)

3.1.4 Green Silicon Carbide 98.5%min 10-30mm EXW China
In late August, the mainstream prices of Chinese green silicon carbide 98.5%min 10-30cm stood at RMB10,400-10,600/t (USD1,1443-1,471/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 2023-07-01 to 2023-08-31 (RMB/t)

3.1.5 Green Silicon Carbide 98.5%min F240 EXW China
In late August, the prevailing prices of Chinese green silicon carbide 98.5%min F240 stood at RMB15,600-16,100/t (USD2,159-2,228/t) Inc-VAT EXW D/A 180 days, down by RMB200/t (USD28/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 2023-07-01 to 2023-08-31 (RMB/t)

3.1.6 Green Silicon Carbide 98%min JIS2000 EXW China
In late August, the mainstream prices of Chinese green silicon carbide 98.5%min JIS2000 stood at RMB22,800-23,800/t (USD3,153-3,391/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 2023-07-01 to 2023-08-31 (RMB/t)

3.2 Chinese Export Market

3.2.1 Black Silicon Carbide 88%min 0-10mm FOB China
In late August, the mainstream export prices of Chinese black silicon carbide 88%min 0-10mm stood at USD785-815/t Inc-VAT FOB China, down by USD5/t from late last month. Most exporters cut their prices down in late August due to the sluggish market demand and the dropped domestic prices.

Black Silicon Carbide 88%min 0-10mm FOB China Price Trend from 2023-07-01 to 2023-08-31 (USD/t)

3.2.2 Black Silicon Carbide 98%min F16-100 FOB China
In late August, the mainstream export prices of Chinese black silicon carbide 98%min F16-100 stood at USD1,310-1,340/t Inc-VAT FOB China, down by USD10/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 2023-07-01 to 2023-08-31 (USD/t)

3.2.3 Green Silicon Carbide 98%min F240 FOB China
In late August, the mainstream export prices of Chinese green silicon carbide 98%min F240 stood at USD2,760-2,860/t Inc-VAT FOB China, down by USD20/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 2023-07-01 to 2023-08-31 (USD/t)

3.2.4 Green Silicon Carbide 98%min JIS2000 FOB China
In late August, the mainstream export prices of Chinese green silicon carbide 98%min JIS2000 stood at USD3,760-3,860/t Inc-VAT FOB China, down by USD20/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 2023-07-01 to 2023-08-31 (USD/t)

3.3 International Market

3.3.1 Black Silicon Carbide 88%min 0-10mm CIF Europe
In late August, the mainstream prices of black silicon carbide 88%min 0-10mm hovered at EUR830-880/t CIF Europe, down by EUR5/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 2023-07-01 to 2023-08-31 (EUR/t)

4. Company News

4.1 Lanzhou Xinyongda stopped black silicon carbide production
As a black silicon carbide producer from Gansu, Lanzhou Xinyongda Silicon Carbide Co., Ltd. just stopped their black silicon carbide production on 28th July due to the terrible sales and thin profit. They only produced about 400t last month. "Given the extremely sluggish demand and the fierce competition from other producers, we could barely get orders with current price and hard to lower further based on thin profit, so we have to halt production to control costs", an insider from the company revealed, noting that they only produced about 400t in July. With a production capacity of 15,000tpy, the company produced only about 5,500t in 2022 due to furnace upgrading and they would keep same production scale this year due to weak demand. They hold an inventory about 300t at present.

4.2 Tianzhu Wenhong resumed black silicon carbide production
Tianzhu Wenhong Technology Co., Ltd., a main black silicon carbide producer from Gansu, resumed their black silicon carbide production on 2nd August, expecting to produce about 700t in August. "We shut down our production line in early June due to weak demand and started to upgrade our furnaces. After the market demand turned better, we resumed production since 2nd August", a source from the company revealed, noting that they expected to produce about 700t this month. Having a present annual production capacity of 40,000t, they produced about 11,000t in 2022 and they produced about 6,000t so far in 2023. They had no stock at the moment.

4.3 Tianzhu Guangfu resumed black silicon carbide production
A major black silicon carbide producer in Gansu, Tianzhu Guangfu Carbon Materials Co., Ltd. resumed their black silicon carbide production on 10th August after equipment upgrading and expected to produce about 1,500t in August. "We halted production on 15th March to upgrade our furnace and we finished the installment of environmental protectional equipment this month and resumed production on 10th August ", a source from the company disclosed, noting that they plan to produce about 1,500t this month. With a present annual production capacity of 50,000t, they produced about 30,000t in the past year and they only produced about 5,000t so far this year due to furnace upgrading. They hold an inventory of nearly 1,500t at the moment.

4.4 Lanzhou Baochuan to increase black silicon carbide production capacity
Lanzhou Baochuan Silicon Carbide Co., Ltd., a black silicon carbide producer from Gansu, plans to increase their black silicon carbide production capacity into 28,000tpy since the first quarter of 2024. "Due to the restriction policy of local government, we have to halt production in early July to upgrade our furnace from 12,500kva into 25,000kva, expecting to finish in the first quarter of 2024. Now they are waiting for the certificate from the authority and estimate to start the project since early October", a source from the company revealed, noting that they would increased their production capacity from 12,000 into 28,000tpy. 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 1,800t.

5 Producers Statistics

5.1 Chinese black silicon carbide producers' statistics

5.1.1 Chinese black silicon carbide producers' operating rate up by 1.49%MoM in August
In August 2023, Chinese black silicon carbide producers' operating rate was 47.31%%, up by 1.49% MoM and up by 0.42% YoY.

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

In August 2023, the black silicon carbide producers' operating rate in Gansu was 37.53%, up by 3.62% MoM and down by 10.00% YoY; that in Ningxia was 60.39%, down by 1.38% MoM and up by 8.97% YoY; that in other areas was 54.43%, unchanged MoM and up by 45.50% YoY.

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

5.1.2 Chinese black silicon carbide producers' output up by 3.24% MoM in August
In August 2023, Chinese black silicon carbide producers' output was 89,000t, up by 3.24% MoM and up by 6.84% YoY.

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

In August 2023, the black silicon carbide producers' output in Gansu was 37,400t, up by 9.62% MoM and down by 12.00% YoY; that in Ningxia was 35,000t, down by 2.28% MoM and up by 17.44% YoY; that in other areas was 16,600t, unchanged MoM and up by 156.00% YoY.

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

5.1.3 Chinese black silicon carbide producers' inventory up by 5.73% MoM in August
In August 2023, Chinese black silicon carbide producers' inventory was 77,400t, up by 5.73% MoM and up by 2.92% YoY.

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

In August 2023, the black silicon carbide producers' inventory in Gansu was 36,700t, up by 17.62% MoM and down by 5.16% YoY; that in Ningxia was 25,200t, up by 0.39% MoM and up by 26.00% YoY; that in other areas was 15,500t, down by 8.28% MoM and up by 207.27% YoY.

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

5.2 Chinese Green silicon carbide producers' statistics

5.2.1 Chinese green silicon carbide producers' operating rate down by 0.81% MoM in August
In August 2023, Chinese green silicon carbide producers operating rate was 42.58%, down by 0.81% MoM and up by 5.02% YoY.

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

5.2.2 Chinese green silicon carbide producers' output down by 1.86% MoM in August
In August 2023, Chinese green silicon carbide producers' output was 10,500t, down by 1.86% MoM, up by 25.00% YoY.

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

5.2.3 Chinese green silicon carbide producers' inventory down by 5.66% MoM in August
In August 2023, Chinese green silicon carbide producers' inventory was 10,000t, down by 5.66% MoM and up by 58.73% YoY.

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

6 Custom Statistics

6.1 China's silicon carbide export volume declined 32.18% YoY in Jul 2023
In Jul 2023, China exported 28,635.11mt of silicon carbide, 42,220.42mt in the same period last year and 25,378.31mt in the previous month, down 32.18% YoY and up 12.83% MoM.
In Jul 2023, China exported USD35,123,337.00 worth of silicon carbide, USD56,089,589.00 in the same period last year and USD34,695,802.00 in the previous month, down 37.38% YoY and up 1.23% MoM. The average price was USD1,226.58/mt, USD1,328.49/mt in the same period last year and USD1,367.14/mt in the previous month.
In Jan-Jul 2023, China exported a total of 206,243.04mt of silicon carbide, 241,341.75mt in the same period last year, down 14.54% YoY.
China's export volume of silicon carbide in previous 13 months

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

In Jul 2023, the top three export destinations of silicon carbide for China were United States, Japan and Mexico.
China exported 9,222.09mt of silicon carbide to United States, 16,592.70mt in the same period last year and 1,431.42mt in the previous month, down 44.42% YoY and up 544.26% MoM. The average price was USD670.27/mt, USD899.45/mt in the same period last year and USD1,037.94/mt in the previous month, down 25.47% YoY and down 35.45% MoM.
China exported 4,746.01mt of silicon carbide to Japan, 5,746.65mt in the same period last year and 5,631.15mt in the previous month, down 17.41% YoY and down 15.72% MoM. The average price was USD2,226.19/mt, USD2,344.00/mt in the same period last year and USD1,989.74/mt in the previous month, down 5.03% YoY and up 11.86% MoM.
China exported 2,436.75mt of silicon carbide to Mexico, 2,650.05mt in the same period last year and 4,068.51mt in the previous month, down 8.05% YoY and down 40.11% MoM. The average price was USD863.35/mt, USD1,012.37/mt in the same period last year and USD806.44/mt in the previous month, down 14.72% YoY and up 7.07% 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.