Silicon carbide prices hit cold water in mid-August after a sustained surge in May. Due to the comprehensive influence of the Olympic Games and transportation, the downstream manufacturers slowed down their purchase of silicon carbide in the middle of August, and many foreign buyers were on vacation. Silicon carbide prices fell sharply today. Qinghai individual manufacturer is anxious to collect capital, had reported today 97% former piece 7200 yuan of low price. That contrasted sharply with last month's high price of 7,800 yuan per ton, which was already a loss for some smelters. But as long as they can collect the money, they have no choice. At present, they only accept cash transactions and short-term contracts at such a low price.

According to multiple information analysis, the price of electricity after the Olympic Games is no objection, some provinces and cities have adjusted industrial electricity again. Smelting anthracite in the recent smelter output reduction in the case of the price has fallen, but the quality has also been reduced. At present anthracite about 1300 yuan per ton. As early as last year, it was predicted that silicon carbide faced a new round of reshuffle, but silicon carbide prices rose all the way last year, almost did not stop the pace of price rises. At this time, the silicon carbide industry continues to have new smelters built, how the operation of the new plant, according to the news is not optimistic.

The country has stepped up the elimination of high energy consumption, high pollution of resource industries, a new round of electricity price is also under way, for silicon carbide, ferroalloy such a large consumer of electricity, is undoubtedly fatal. How can small smelters survive at such prices? Some factories have problems with their working capital, because raw materials such as anthracite and electricity are big cash expenses. Labor wages can be delayed, electricity costs can be delayed and production has to stop. Once production has stopped, it is difficult to restart it.

Some buyers think that the recent silicon carbide price drop is reasonable, normal level. But according to the current cost of silicon carbide smelting, according to the price of 97% of the original block 7200-7300,88-90% 3500-3600and 70%2300-2400, smelting manufacturers are almost no profit, there is no need to produce without profit, some small manufacturers are considering the future of the factory. Silicon carbide industry shuffling began to say from last year, this year began to have real movement. If such a high price runs for more than half a year, the whole industry chain may find changes.