Analysis of domestic silicon carbide market

Speaking of silicon carbide, I believe that most of the people who are ready to develop in this industry are very familiar with it, and even some people have invested in this industry, as well as some people are still in the stage of constant exploration, so how about the prospect of the future market of silicon carbide? Are you making the right investments? Let me give you a brief introduction below!

1, The domestic market has not been opened, and silicon carbide has excess capacity

It is reported that there are more than 200 silicon carbide enterprises with an annual production capacity of over 2.2 million tons, and more than 300 enterprises which their main businesses are sand making and micro powder processing, with an annual production capacity of more than 2 million tons inChina. In addition, there are about a third of smelting enterprises have the production line of sand and powder, and many have started to recycle mortar. However, the demand for silicon carbide in domestic market is only 700,000 tons, which is mainly used for low value-added abrasive tools and refractory. Furthermore, the Chinese high-end markets, such as smart grids, new-energy vehicles and military electronics systems, are still in their early stages of development. The silicon carbide market has not yet been fully opened, which annual exports of it is only about 300,000 tons. As a result, the overcapacity and inadequate construction of new equipment and factories are the important problems faced by domestic silicon carbide industry.

2, Compete on price, the competition is in disorder

Because the domestic silicon carbide is mainly used in the field of low value-added abrasive tools and refractory materials, however, abrasive tools and refractory materials are important raw materials in the traditional industries such as steel and construction, yet these traditional industries are closely related to the country's macroeconomic trends. In recent years, under the influence of the macro-economic downturn and the new normal of the domestic economy, the demand for silicon carbide in the domestic market has also shown a trend of fluctuation and decline. Faced with this situation, many small and medium-sized enterprises have begun to focus on exports. However, the most primitive "price strategy" that blindly pursued the expansion of export volume means is adopted by some small and medium-sized silicon carbide enterprises, and as a result, makes the industry in a state of disorderly competition.

3, Technology is becoming mature, but the investment in research and development is still insufficient

At present, the preparation technology of silicon carbide has been mature inChina, but the performance index of advanced products is still different from that of similar products in developed countries. In addition, the quality management of the single particle size and micro powder of the deeply processed products in silicon carbide industry is not fine enough, as well as the quality stability of the products. Many companies only focus on expanding production capacity, but are lagging in the research, development and technological innovation of products.

4, Low profit era, the industry is facing the inevitable reshuffle

The industry itself is a low-margin one, and subject to a variety of factors. Besides, profits are expected to fall further. When downstream demand is weak, it is difficult for silicon carbide manufacturers to maintain high-cost and low-profit production, then resulting in a sharp deterioration of business conditions. In addition, a series of measures such as reducing electricity subsidy, saving energy, reducing emissions, and closing down backward production facilities which have repeatedly impacted the silicon carbide market. Therefore, it is imperative to restructure the industry.

5, How far is the road to rebirth in nirvana

Through the above analysis of the demand characteristics, competition characteristics, technical characteristics and profit characteristics ofChina's silicon carbide industry, it can be seen thatChina's silicon carbide industry has been in the stage of decline, and the decline is caused by low efficiency. However, there is still hope for the rise of the silicon carbide industry, because it itself is widely used. In particular, since 2015, the photovoltaic industry has started to recover, the semiconductor industry is in full swing and entering the golden period of development, the new energy automobile industry is also developing, and the country is fully laying out the smart grid. All developments of these new markets will bring opportunities to silicon carbide, but most high-end products in these fields rely on imports now. Therefore, what silicon carbide enterprises need to do now id to practice the basic skills and increase investment in technology to gain momentum. In general, only when technology keeps pace with The Times can it meet the growing market demand.

Note: The above analysis is for reference only, you can choose according to your own needs!