Current Price of Calcium Silicon
As of September 28, 2023, the calcium silicon market in China is showing remarkable resilience. Calcium silicon factories in regions such as Inner Mongolia, Ningxia, and Shaanxi are holding strong with robust quotations. The prevailing mainstream quotation for calcium silicon alloy, specifically Ca30Si60, stands at 12,300-12,500 yuan per ton, with the mainstream transaction price ranging between 12,100-12,300 yuan per ton (inclusive of cash price and ex-factory tax).
Several positive factors are currently shaping the calcium silicon market, and there’s an anticipation of further price increases post-holiday. Examining the cost dynamics of calcium silicon, electricity prices in various areas have remained relatively stable. However, recent rapid increases in the prices of raw materials like coke, limestone, and blue charcoal have lent support to the production costs of calcium silicon.
Calcium Silicon Lump
From a market inventory perspective, factories in Ningxia and Inner Mongolia are operating without significant inventory pressure. In fact, some have already placed substantial orders. Meanwhile, inventories in Shaanxi are at comparatively low levels, indicating no immediate negative impact on prices.
Looking at shipment trends, the calcium silicon alloy market has experienced healthy shipments since September, largely due to downstream stocking activities before the holiday season. This uptick in demand has buoyed factory sentiments.
While it remains uncertain whether market demand will continue to rise after the holiday period, various factors, including production costs and inventory levels, suggest significant improvement in the calcium silicon alloy market compared to the first half of the year. Consequently, factories are growing more confident in their ability to stabilize prices post-holiday, and there’s even the possibility of continued incremental price increases.
Calcium Silicon Price Trends in the Third Quarter
The third quarter of 2023 has witnessed a noteworthy shift in the overall trajectory of the national standard calcium silicon alloy market. Initially weak, the market has gradually gained strength. At the beginning of the year, the ferroalloy market was affected by economic conditions, resulting in sluggish terminal demand and lackluster market transactions. Consequently, the price of calcium silicon alloy experienced a consistent decline since the Spring Festival, with the market entering a phase of depression. At one point, the price of calcium silicon fell below the 11,000 yuan mark, leaving factories teetering on the brink of their cost lines.
Calcium Silicon Granules
However, starting in July, the Inner Mongolia calcium silicon factories faced production challenges, leading to reduced output. During this period, spot inventory levels in the market were gradually depleted. As we approached September, prices of key raw materials such as coke and limestone continued to surge, amplifying the production costs of calcium silicon. This uptick in costs had a cascading effect on other calcium silicate alloys, driving their prices higher as well. Consequently, the price of calcium silicon began a sustained upward trajectory.
Fueled by a market sentiment of “buying up and not selling down,” downstream players initiated inventory replenishment ahead of time, further depleting calcium silicon inventories. In response to this shift in supply and demand dynamics, some factories commenced production order arrangements. This shift has created a pronounced momentum in the calcium silicon market, instilling greater confidence among factories in raising prices.
In conclusion, the calcium silicon market has exhibited remarkable resilience and price recovery in the third quarter of 2023, after a period of weakness earlier in the year. The interplay of factors such as rising production costs, improving inventory conditions, and increased demand is expected to influence pricing dynamics in the near future.