Silicon Carbide Price Trend and Forecast

Silicon Carbide Regional Price Overview

Get the latest insights on price movement and trend analysis of Silicon Carbide in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Silicon Carbide Price Trend Analysis for 2024

Asia

In the Asia Pacific region, Silicon Carbide prices showed considerable volatility throughout 2024. The year began with declining prices due to cautious market sentiment and elevated shipping costs. By Q2, prices started recovering as consumer sentiment improved and production levels increased, particularly in Japan following Golden Week.
 

Silicon Carbide Price Chart

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The third quarter brought higher prices due to robust demand combined with persistent supply constraints. However, the fourth quarter saw notable price swings, with October bringing an uptick due to slowed production and climbing input costs, followed by declining prices as demand weakened and companies focused on inventory management.

Europe

The European Silicon Carbide market experienced mixed pricing trends in 2024. The first quarter saw prices drop due to weak demand and subdued consumer sentiment. By Q2, prices rebounded as the European Central Bank implemented rate cuts, boosting business confidence. Summer months brought steady price increases driven by strong demand from end-user industries and proactive inventory management.

Transportation challenges, including Northern European terminal congestion and the Red Sea conflict, added upward pressure. By Q4, harsh winter weather disrupted logistics, while high inventory levels and year-end clearance efforts pushed prices downward despite initial optimism.

North America

In North America, Silicon Carbide prices followed a fluctuating pattern throughout 2024. The year started with an upward trend in Q1, driven by supply chain disruptions and increased logistics costs due to the Red Sea crisis. By Q2, prices stabilized briefly before rising again as seasonal demand picked up and manufacturers increased inventory levels ahead of potential supply interruptions.

The third quarter saw prices decline as inflation rates normalized and consumer confidence improved. However, Q4 brought renewed volatility when port congestion and labor strikes created logistical challenges. The resolution of the ILA strike later in the year helped ease some pressure, but tariff concerns under the new administration kept market players cautious.

Future Outlook

According to Procurement Resource, the Silicon Carbide market is expected to maintain volatility due to ongoing logistics challenges and shifting energy costs. Increasing applications in electric vehicles and renewable energy will likely provide steady demand growth.
 

Silicon Carbide Price Trend for the Second Half of 2023

Asia

The Asian Silicon Carbide market experienced significant volatility during H2’23. The third quarter began with stable pricing supported by steady demand from electronics and specialty chemical sectors. However, as manufacturing activities in China slowed during late summer, coupled with increased production rates, the market faced downward pressure.

The situation was further complicated by reduced industrial activities during the monsoon season in Southeast Asia. By the fourth quarter, excess inventories pushed producers to adopt competitive pricing strategies, though some support came from modest improvements in semiconductor manufacturing demand toward year-end.

Europe

European Silicon Carbide markets faced challenging conditions throughout H2’23. The third quarter witnessed gradual price declines as energy costs moderated and industrial demand remained subdued. Construction sector's seasonal slowdown during summer months further weakened market position.

The fourth quarter showed signs of stabilization, primarily supported by steady demand from specialty glass manufacturing and modest improvements in regional industrial activities. The market also benefited from reduced imports from Asia, which helped maintain price levels despite overall economic uncertainty in the region.

North America

The North American Silicon Carbide market displayed mixed performance during H2’23. The third quarter started with firm pricing supported by consistent demand from electronics and specialty applications. However, market dynamics shifted by mid-quarter as increased domestic production and softening industrial demand created oversupply conditions. The fourth quarter saw some recovery as manufacturers adjusted production rates and semiconductor industry demand improved. The market benefited from stable raw material costs toward year-end, which helped producers maintain operational margins while offering competitive pricing.

Analyst Insight

According to Procurement Resource, Silicon Carbide prices are expected to stabilize in early 2024, influenced by anticipated recovery in construction and electronics sectors, while balanced production rates would likely prevent significant market volatility.
 

Silicon Carbide Price Trend for the First Half of 2023

Asia

The price trend of silicon carbide is dependent on the market activities of silicon dioxide and carbon, as they both serve as feedstock materials. During the first quarter, silicon carbide prices saw an increase with support from sustained demand and improved sales in the pharmaceutical sector.

Additionally, factors such as the onset of the spring festival and ongoing tensions between Russia and Ukraine also positively influenced the price trend of silicon carbide. However, in the second quarter, prices took a sharp downturn owing to the decline in purchasing activities during this period. Simultaneously, the manufacturing industries contracted, ultimately leading to a decline in the silicon carbide price trend.

Europe

In the initial phase of the first quarter of 2023, silicon carbide prices surged due to high input costs and escalating inflation rates, propelling market momentum. In contrast, the second quarter witnessed a significant decline in silicon carbide prices. This decline was primarily attributed to reduced manufacturing activity and lower demand in the consumer sector. In addition to this, this decline in demand led to a significant rise in the level of inventories that increased the pressure on trading activities in the European countries, contributing to the falling trend of silicon carbide prices.

North America

In the first quarter of 2023, the rising cost of raw materials and strong demand sentiments in the domestic sector contributed to the upturn in silicon carbide prices. However, the second quarter failed to maintain this positive momentum, resulting in a decline in silicon carbide prices. Both domestic and international industries experienced a downturn in supply and demand, driving silicon carbide prices on a downward trajectory. Additionally, the global economy faced challenges that slowed the increase in oil prices and energy costs, further contributing to the decline in the silicon carbide price trend.

Analyst Insight

According to Procurement Resource, the price trend of Silicon Carbide is estimated to decline in the upcoming quarters as the demand from the downstream industries is falling consistently.

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