Silicon Carbon Alloy Price Fluctuations
Sep 16, 2025
In the steel metallurgy, casting, and new energy sectors, silicon carbon alloys (Si-C alloys) are gradually replacing traditional ferrosilicon and silicon carbide due to their efficient deoxidation and carburization capabilities and cost advantages.
In 2024, the market price of silicon carbon alloys (Si ≥ 55%, C ≥ 20%) in China will fluctuate between 3,800 and 4,500 yuan/ton, 30%-40% lower than ferrosilicon. However, price fluctuations can reach 15% due to multiple factors.
I. Raw Material Costs: The Underlying Logic of Price Fluctuations
Raw materials account for approximately 65%-75% of the production cost of silicon carbon alloys. Core raw materials include silica (SiO₂ ≥ 99%), coke (fixed carbon ≥ 85%), and scrap silicon.
1. Silica Quality and Regional Price Differences
High-purity silica (Al₂O₃ ≤ 0.3%) produced in Ningxia is priced 200-300 yuan/ton higher than medium- and low-grade silica produced in Henan, directly affecting the stability of the alloy's silicon content. Silica imports surged 23% in 2024, but Vietnamese and Malaysian silica, due to its high impurity content, is only suitable for producing casting-grade silicon carbon alloys.
2. Coke Price Linkage
The price difference between low-sulfur coke (sulfur ≤ 0.5%) and high-sulfur coke can reach 500 yuan/ton. The former increases the deoxidation efficiency of silicon carbon alloys produced by the former by 18%, but at a 12% cost increase. In early 2025, coke prices rose 15% driven by steelmaking demand, directly pushing up the cost of silicon carbon alloys by 400 yuan/ton.
3. Energy Cost Sensitivity
Electric arc furnace smelting consumes 8,000-10,000 kWh of electricity per ton of silicon carbon alloy. Every 0.1 yuan/kWh increase in electricity prices increases costs by 800-1,000 yuan. Inner Mongolian companies, with their own power plants (priced at 0.35 yuan/kWh), enjoy 20% lower costs than Henan companies that purchase electricity from outside.
II. Production Process: Technological Thresholds Determine Value Stratification
High-end process products command a significant premium: The price of porous silicon-carbon alloy for power batteries reaches 80,000 yuan/ton, 20 times that of metallurgical-grade products.
III. Supply and Demand: The Hidden Driver of the Industrial Chain
1. Structural Changes on the Demand Side
The steel industry accounts for 70% of silicon carbon alloy consumption. A 5% decline in crude steel output in 2024 will result in a 12% reduction in metallurgical-grade demand.
New Energy Counter-Trend Growth: Demand for silicon carbon anode materials for power batteries surges by 40%, driving the price of high-purity micropowders above 60,000 yuan/ton.
2. Supply-Side Capacity Game
China's silicon carbon alloy production capacity is concentrated in Henan (45%) and Ningxia (30%). The industry's CR5 (concentration of the top five companies) will be only 38% in 2024. Small-scale workshop-style enterprises engaging in low-price dumping will result in a market price gap of 700 yuan/ton.
3. International Trade Transmission Effect
The EU raised its anti-dumping duty on Chinese silicon-carbon alloys to 28%, forcing exports to fall from 25% to 12% and leading to a domestic inventory backlog exceeding 80,000 tons.
