Silicon Carbide Supply Tightens As Prices Rise in August

The silicon carbide market in August resembled a precision instrument, where even minor parameter adjustments could ripple across the entire sector. This report delves into the key data points shaping the market last month—from production and trade to pricing trends—to present a comprehensive analysis.

August witnessed notable fluctuations in the silicon carbide market, reflecting both immediate conditions and future trajectory signals. Below are the pivotal developments that defined the period.

Macroeconomic policies and financial conditions significantly influenced the silicon carbide sector. Domestic and international regulatory shifts and economic events directly or indirectly impacted market dynamics, as outlined in this section.

As a global leader in silicon carbide production and consumption, China's market activity remained under close scrutiny. Key observations included:

• 88%min 0-10mm domestic price: Stabilized due to steady downstream demand.
• 98%min 10-30mm domestic price: Active transactions reduced inventory levels.
• 98%min F16-100 domestic price: Firm pricing supported by consistent demand from abrasives manufacturers.

• 98.5%min 10-30mm domestic price: Moderate increase driven by high-end applications.
• 98.5%min F240 domestic price: Tight supply amid robust demand for precision grinding.
• 98%min JIS2000 domestic price: Export-driven price adjustments following order growth.

• 88%min 0-10mm FOB price: Stable volumes met consistent global demand.
• 98%min F16-100 FOB price: Intense competition compressed profit margins.
• 98%min F240 FOB price: Higher-value exports gained market share.
• 98%min JIS2000 FOB price: Japanese imports surged significantly.

• 88%min 0-10mm CIF Europe price: Rose due to elevated shipping costs.

• Operating rates: Declined 1.74% monthly amid maintenance and environmental restrictions.
• Output: Fell 3.42% correspondingly.
• Inventory: Dropped 1.71%, indicating healthy demand.

• Operating rates: Contracted 3.35% due to power shortages and environmental policies.
• Output: Plunged 11.38%, exacerbating supply constraints.
• Inventory: Reduced 10.52% as demand accelerated.

China's July silicon carbide imports plummeted 69.86% year-over-year, reflecting expanded domestic capacity and import substitution effects.

• Semiconductors: EV and consumer electronics growth boosted power device applications.
• Solar: Silicon carbide substrates gained traction in inverters.
• Abrasives: Stable demand accompanied by rising quality standards.

• Black 88%min 0-10mm: Stable pricing expected amid balanced supply-demand.
• Black 98%min 10-30mm: Marginal increase likely from rising input costs.
• Green 98%min F240: Sustained premium pricing on specialized demand.

• Black 98%min F16-100 FOB: Potential softening from weaker international orders.
• Green JIS2000 FOB: Continued Japan-bound shipment growth.

• European CIF prices: Further hikes anticipated from logistical and currency pressures.