WTO adjudication drags down price of silicon carbide export license
2012-02-03 09:44:22 [Print]
BEIJING (Asian Metal) 3 Feb 12 – World Trade Organization (WTO) made adjudication Monday that Chinese government’s appeal that the export quota and restriction on nine industrial raw materials does not tally with the spirit of free trading ruling, and Chinese Ministry of Commerce expressed its respect to the verdict. Chinese export holders including producers and traders turn their attitudes towards the price of export license swiftly.
The offer for export license drops from RMB2,000/t (USD317/t) or even higher to RMB1,200-1,300/t (USD190-206/t). With few firm enquiries from overseas customers, Chinese suppliers predict that silicon carbide export market will keep slow as it was in the fourth quarter.
A trader from Henan reports that there are few firm enquiries for silicon carbide after the Spring Festival. Without any deals concluded in January, the source is not optimistic about the market in Q1. “Most consumers are using inventories purchased last quarter, and only a few ones may replenish stocks for some emergent materials,” said the source.
However, the source does not believe that the market could get strong in the second quarter as the situation in the past years. “Since the WTO adjudication was released recently, foreign customers hope that they can get Chinese silicon carbide at lower prices. Some cut down purchase quantities to the lowest level in order to wait for cancellation of export quotas in the second half year,” said the source. On the basis of above atmosphere, Chinese suppliers who used to hold price of export license at high level adjust down the target price from RMB2,000/t to RMB1,500/t (USD238/t) or below, hoping to use all the export quotas released in the first round bid as soon as possible.
About the replaced measurement, there is not any information released. Most participants guessed that export duty may be the substitute to restrict export volume in terms of environmental protection and energy-saving.
The source received offers for export license at RMB1,200-1,300/t, and heard that some agreements have been signed at the price.
A producer from West China adjusted down the price of silicon carbide 0-10mm 88%min from USD1,200/t FOB China to USD1,100/t FOB China. However, there is not any firm enquiry from overseas customers for the moment. “A few enquiries were testing the market and the final contract may be signed in the middle of February or late February,” said the source.
“We have no idea about the export quotas policy to be cancelled from June or next year,” said the source. “Customers may try to postpone purchasing activities by consuming inventories or buy from other channels.”
The offer for export license drops from RMB2,000/t (USD317/t) or even higher to RMB1,200-1,300/t (USD190-206/t). With few firm enquiries from overseas customers, Chinese suppliers predict that silicon carbide export market will keep slow as it was in the fourth quarter.
A trader from Henan reports that there are few firm enquiries for silicon carbide after the Spring Festival. Without any deals concluded in January, the source is not optimistic about the market in Q1. “Most consumers are using inventories purchased last quarter, and only a few ones may replenish stocks for some emergent materials,” said the source.
However, the source does not believe that the market could get strong in the second quarter as the situation in the past years. “Since the WTO adjudication was released recently, foreign customers hope that they can get Chinese silicon carbide at lower prices. Some cut down purchase quantities to the lowest level in order to wait for cancellation of export quotas in the second half year,” said the source. On the basis of above atmosphere, Chinese suppliers who used to hold price of export license at high level adjust down the target price from RMB2,000/t to RMB1,500/t (USD238/t) or below, hoping to use all the export quotas released in the first round bid as soon as possible.
About the replaced measurement, there is not any information released. Most participants guessed that export duty may be the substitute to restrict export volume in terms of environmental protection and energy-saving.
The source received offers for export license at RMB1,200-1,300/t, and heard that some agreements have been signed at the price.
A producer from West China adjusted down the price of silicon carbide 0-10mm 88%min from USD1,200/t FOB China to USD1,100/t FOB China. However, there is not any firm enquiry from overseas customers for the moment. “A few enquiries were testing the market and the final contract may be signed in the middle of February or late February,” said the source.
“We have no idea about the export quotas policy to be cancelled from June or next year,” said the source. “Customers may try to postpone purchasing activities by consuming inventories or buy from other channels.”
Silicon Carbide Black 88%min 0-10mm In warehouse Rotterdam
Unit:EUR/mt
China black silicon carbide producers' inventory to production ratio statistics by province by month
Unit: %
