While metallurgical grade sic prices in Europe are trading at low levels, volumes have been slow over the past month and a half as most end users plan to make purchases after the Chinese New Year holiday. Market participants are unsure whether demand will recover by the end of the month and say prices cannot fall further. With metallurgical grade silicon carbide prices severely bottoming out following the removal of Chinese export quotas, most European producers will not cut their offers further. The market is expected to remain flat in the coming weeks as the sluggish economic environment in Europe continues to impact downstream demand.

European market participants are optimistic about the price of 88# metallurgical grade silicon carbide despite slow purchasing. The current price is 800-860 euros/ton including tax delivered to Central Europe. Suppliers are reluctant to cut prices further and prices will hold steady in the coming weeks.

A central European market, metallurgical silicon carbide prices have bottomed out. The market player trades 3000-4000 tonnes of metallurgical grade silicon carbide annually. Last Friday he received an offer for 88# metallurgical silicon carbide at 800-850 euro/ton including tax to central Europe.

However, the market believes that the next few weeks market demand recovery is unlikely, vendors are likely to lower prices. European producers' profits have been severely squeezed after a sharp fall in prices at the end of 2012, and most Chinese suppliers have been reluctant to cut their prices. Many suppliers also know that small price cuts will not lead to a recovery in weak demand, and that optimism is more important in some key downstream sectors. "Vendors also understand that the weakness in purchasing is due to the weak economic outlook rather than current price levels. So they kept the offer steady to avoid losses, "the market source said.

Another market in Central Europe said that until the end of the month, European metallurgical grade silicon carbide market trading will continue to be light. The market player trades 2,000 to 3,000 tons of metallurgical grade silicon carbide annually. He quoted 88# European metallurgical grade silicon carbide at 860 euro/ton including tax to Central Europe.

The market player mainly engaged in metallurgical grade silicon carbide products trading, he expects the market will continue to slow down in the next week or two, prices steady. However, he said higher electricity prices have some support, but the main reason sellers are reluctant to lower their prices is that they know it will do little to stimulate demand. "Margins have been slashed and it is more difficult for global producers to sell metallurgical grade sic in The European market," the market source said.

Yingkou Golden Dragon Group