Silicon Metal Prices Remained Stagnant at Low Levels [SMM Silicon Industry Weekly Review]

SMM April 9 News:Silicon metal:The silicon metal market remained stagnant and slightly weak this week, with the price center of some specifications shifting downward. As of April 9, SMM east China oxygen-blown #553 silicon was at 8,900-9,100 yuan/mt, down 100 yuan/mt WoW; #441 silicon was at 9,200-9,300 yuan/mt, down 100 yuan/mt WoW; #421 silicon was at 9,300-9,500 yuan/mt, down 100 yuan/mt WoW; #3303 silicon was at 10,100-10,300 yuan/mt, unchanged WoW. In the futures market, the most-traded silicon metal contract moved sideways around 8,200-8,400 yuan/mt over the past week, and the silicon metal market was under pressure with narrow price fluctuations.

On the demand side, the weekly operating rate of polysilicon remained stable. Polysilicon prices continued to decline, with low prices falling below the cost lines of some polysilicon enterprises, which would exert certain pressure on raw material silicon metal prices and demand going forward. The weekly operating rate of silicone enterprises was basically stable. In April, the externally purchased prices of #521 and #421 silicon by some monomer plants weakened MoM. At the end of March, some individual high-grade silicon enterprises in northern China reduced or halted production under the pressure of losses. The operating rate of aluminum-silicon alloy enterprises saw limited changes. In early April, some primary alloy enterprises moderately increased production loads, while the operating rate of leading enterprises in the recycling industry remained stable. Some small and medium-sized enterprises experienced phased shutdowns during the Qingming Festival holiday due to insufficient downstream orders.

Overall, the supply and demand of silicon metal in April were expected to show a tight balance structure. However, the rainy season in the southwest from June to July would exert pressure on the industry with expectations of increased supply, making it difficult for fundamentals to show clear improvement expectations for the time being. Coupled with ample spot silicon metal supply, the tendency of some downstream users to purchase at low prices, and increasing inventory pressure on some small and medium-sized silicon enterprises, the market held a cautious outlook on the future. Attention should be paid to whether there were changes in operating rates on the supply side.

Polysilicon:The polysilicon price index was 35.417 yuan/kg this week. N-type recharging polysilicon was quoted at 34-37 yuan/kg, dense polysilicon at 33-36 yuan/kg, and granular polysilicon at 34-36 yuan/kg. Polysilicon prices continued to decline this week, with panic/bearish sentiment still prevailing. Prices around 32 yuan/kg were even reported in the market, but the volume and recognition remained low. Currently, the polysilicon market was under dual pressure from inventory and the subsequent resumption of production by major manufacturers. Producers had a strong desire to offload goods, and the outlook for subsequent prices remained slightly pessimistic.

Wafer:Wafer prices continued to decline this week. N-type 183 wafer prices were at 0.93-1.00 yuan/piece, 210R wafer was quoted at 1.00-1.05 yuan/piece, and 210mm wafer was quoted at 1.23-1.30 yuan/piece. Prices of wafers across all sizes declined, and the transaction center began to shift toward the lower end of the range. After the recent continuous decline in raw material prices, wafer enterprises have relatively weak bargaining power due to high inventory levels, and thus have had to follow the cost reduction. Wafer prices are expected to have further room for a decrease of around 0.03 yuan/piece in the short term.

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