Strategic Shifts Reshape Global Ferrosilicon and Silicon Carbide Sectors: Trade Policies, Tech Investments, and Supply Chain Diversification Intensify
Ferrosilicon Industry Dynamics
1.EU Trade Policy Impacts
The European Commission has initiated its third sunset review of anti-dumping duties on ferrosilicon imports from China and Russia, investigating whether removing existing measures would reignite dumping or harm EU producers. This review, spanning a 2024 dumping investigation period and 2021–2024 injury analysis, extends duties in place since 2008. The move underscores persistent trade tensions, with Euroalliages advocating for continued protection of regional producers .
2.Market Volatility and Policy-Driven Sentiment
China’s ferrosilicon futures recently surged to limit-up amid speculation about impending industry-wide "anti-internal competition" policies. Market sentiment is fueled by anticipated supply constraints, as producers consider 30%–40% energy-saving and emission-reduction targets. Despite high volatility, domestic spot prices rose significantly due to tightened supply and active futures trading, though downstream buyers remain cautious about sustained high costs .
3.Production and Export Trends
Chinese ferrosilicon output rose marginally in late July, with operational rates at 33.33% and daily production reaching 14,615 tons. Export volumes declined 8.91% month-on-month in June but grew 16.72% year-on-year, reflecting fluctuating global demand. Domestic steel mills have begun August procurement, with market attention focused on tender outcomes to gauge near-term demand resilience .
Silicon Carbide (SiC) Sector Developments
1.Major Projects Reshape Supply Chains
Inner Mongolia’s Zhungeer County secured a ¥3 billion project to produce 1.5 million tons of high-purity quartz sand and silicon carbide（https://www.hscy-trading.com/silicon-carbide/） annually. Leveraging local quartz reserves, the initiative targets semiconductor and photovoltaic applications—sectors where China currently imports 80% of high-end quartz. The project aims to cut downstream material costs by 30% and elevate resource value: electronic-grade SiC powder commands prices ~200× higher than standard quartz sand .
2.Global Manufacturing Expansion
Infineon Technologies has launched a RM30 billion investment in Malaysia to build the world’s largest 200mm SiC power fab. The facility’s first phase is operational, creating 1,500 high-income jobs and strengthening Southeast Asia’s semiconductor ecosystem. Infineon will also develop local SMEs through a vendor program, signaling confidence in Malaysia’s role in resilient SiC supply chains .
3.Technological Advancements and Applications
While not detailed in the latest reports, prior innovations like China’s breakthrough in 8-inch single-crystal SiC via liquid-phase epitaxy (LPE) continue to drive cost reduction and defect control. SiC adoption is expanding beyond electric vehicles into AI data centers, where its efficiency in high-voltage power supplies and cooling systems aligns with rising computing demands .
Cross-Industry Implications
● Supply Chain Diversification:Infineon’s Malaysia investment and Inner Mongolia’s vertical integration reflect strategies to mitigate geopolitical and trade risks through regional self-sufficiency.
● Policy-Driven Uncertainty:EU ferrosilicon duties and China’s potential production caps highlight regulatory influence on market stability.
● Value Chain Transformation:Both sectors emphasize upgrading raw materials (e.g., quartz to electronic-grade SiC) and integrating renewables to align with global decarbonization goals.
Industry Comment:
“Ferrosilicon faces policy headwinds, but supply adjustments and green tech could stabilize margins. For SiC, scaling high-purity material production and securing multi-regional manufacturing are critical to meeting semiconductor and clean energy demand.”
— Analyst, Global Materials Review
Sources: Inner Mongolia Daily, EU Commission, Mysteel, EdgeProp, China Trade Remedial Information Network.