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Recent Market Situation Summary for Silicon Carbide

Views: 2     Author: Site Editor     Publish Time: 2021-10-10      Origin: Site

Affected by the national "double control of energy consumption" regulation policy and the sharp rise of raw materials, the market situation of bulk raw materials for coated abrasives is volatile, the price rises sharply, or there is no market, which will have a great impact on the production of our industry. Take silicon carbide as an example to restore the recent market turmoil:



Ⅰ. Affected by multiple factors, the price of silicon carbide crude soared.



The price of silicon carbide crude is about 6300 yuan / ton before the Mid Autumn Festival. Before the Mid Autumn Festival, some smelters increased the selling price to about 7000 yuan / ton. After the Mid Autumn Festival, the silicon carbide Association held a meeting in Yinchuan to discuss the price trend of silicon carbide under the current environment of "double control of energy consumption", decided to hold a group for heating and implement a unified quotation.



Current unified external quotation:

Black silicon carbide: 98% crude 13000 yuan / ton, 88-90% crude 11000 yuan / ton. An increase of 200%.

Green silicon carbide: 9800 / ton, ex factory tax included.



This is the decision made by smelting manufacturers in Northwest China after analyzing the specific situation of abrasive industry. From its own situation, the price of anthracite or petroleum coke used for smelting silicon carbide has increased by about 300-400 yuan / ton, and the supply is very tight. The price of quartz sand increased by about 200 yuan / ton, which is also in short supply.



At the same time, affected by the national "dual energy control", more than 90% of the energy consumption of silicon carbide smelters in this area has exceeded the standard, and it is expected to stop production and reduce production in a large area in the fourth quarter. Meanwhile, in the face of the recent "power cut", the operating rate of the smelter may be less than 30% of the original.



In Gansu, due to the problem of "energy assessment report", seven smelters have been ordered to shut down until the approval of "energy assessment" is completed.



Ⅱ. Silicon carbide processing enterprises stop purchasing and suspend receiving new orders.



The soaring price of silicon carbide raw material crude has a great impact on the midstream of silicon carbide abrasive processing enterprises.


In recent years, processing enterprises need 100% advance payment for purchasing raw materials. Then they sell on credit to the downstream coated abrasive manufacturing enterprise according to the accounting period of 60-90 days after processing. (Customers with good reputation can still pay on time. In case of enterprises with bad reputation, they don't know when to receive the payment.) This sales model has brought great financial pressure to silicon carbide processing enterprises. Last year, some abrasive enterprises maliciously dumped at low prices and disrupted the market, resulting in a net profit of less than 100 yuan per ton of coarse-grained silicon carbide abrasive. Therefore, the compressive capacity of coarse-grained silicon carbide products is very poor, and if the price of raw materials fluctuates slightly, it will lose money.



In the difficult survival, many silicon carbide processing enterprises have suspended receiving new orders and stopped purchasing raw materials under the high pressure of many adverse factors such as the sharp rise of 200% of raw materials, switching off and power restriction, dual control of energy consumption and so on. After the price of raw materials is stable, the quotation will be received after the cost is recalculated.


Ⅲ. Summary.


The violent turbulence in the raw material market will certainly have a great impact on the coated abrasive tool industry. Enterprises in various industries should make full ideological preparations, adjust in time, respond calmly, strive to grasp the market and tide over the turbulence.



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