The raw materials of black silicon carbide smelting are mainly anthracite and silicon. Silicon carbide manufacturing belongs to the high energy consumption industry. With the increase in the implementation of environmental protection across China, the domestic epidemic control has been stabilized, and the demand for industries such as steel and foundry has continued to rise, which has given rise to the momentum of black silicon carbide from both ends of the supply and demand. In addition, the overseas epidemic situation is still serious. The growth of silicon carbide exports has provided more room for black silicon carbide price increases.
However, black silicon carbide has soared in such a short period of time, there absolutely are other reasons. Recently, many regions have taken “dual-energy consumption control” for environmental protection. The main method is power restriction. These regions include not only Ningxia, Henan, Qinghai, Inner Mongolia, but also Yunnan, Sichuan, Chongqing, Jiangsu, Zhejiang, Guangdong, etc., Even Guangxi also requires enterprises to use electricity in an “orderly” way. While Hunan Power plant issued an orange warning on electricity supply. Especially, Ningxia province is the base of black silicon carbide smelting. Many high-energy-consuming enterprises there were required to suspend production for one month.
The sudden “shortage of electricity” is the real reason for the increase in black silicon carbide price and upstream raw materials including chemicals and cement. On September 26, 2021, the price of 98%-grade raw silicon carbide block was close to 1550 USD/ton. In the meantime, many silicon carbide grains and powder manufacturers quit to supply and quote before the end of September. It is foreseeable that the recent surge in raw materials has spread to a wide range and intensity, and will have a huge impact on more industries in local china and worldwide.