Silicon Metal Price Moves Sideways [SMM Silicon Industry Weekly Review]

SMM, August 27: Silicon Metal: This week, silicon metal prices strengthened within a narrow range. As of August 27, SMM east China oxygen-blown #553 silicon was at 9,300-9,500 yuan/mt, up 50 yuan/mt WoW; #441 silicon was at 9,500-9,600 yuan/mt, up 50 yuan/mt WoW; #3303 silicon was at 10,100-10,200 yuan/mt, flat WoW. In the futures market, the SI2611 contract consolidated around 8,700-8,800 yuan/mt and closed at 8,805 yuan/mt at the end of Thursday's session, up 50 yuan/mt WoW. In terms of market offers and transactions, silicon suppliers held firm on quotes, some downstream aluminum alloy and silicone just-in-time procurement orders were released, and the market transaction center shifted slightly higher.

On the demand side, polysilicon enterprises' weekly production was stable compared to last week, with some polysilicon enterprises raising operating load, leading to a slight increase in polysilicon production over the past 1-2 weeks. Silicone enterprises' weekly operating rate was slightly weak within a narrow range, with the industry operating rate around 60%. Silicone monomer enterprises had moderate advance orders, and silicone DMC prices firmed amid stability. Aluminum-silicon alloy enterprises' operating rates saw a mild and gradual recovery; recently, the production pace of secondary aluminum alloy leaders recovered, but as improvement in end-use demand was limited, the overall rebound remained mild.

Overall, market supply and demand were relatively stable recently. The market awaited the implementation of production cuts by large plants at month-end, with some suppliers maintaining a strong wait-and-see sentiment, leading silicon metal prices to move sideways.

Polysilicon: This week, the polysilicon price index was 40.73 yuan/kg. N-type recharging polysilicon was quoted at 38.9-42.5 yuan/kg, and granular polysilicon was quoted at 39-40 yuan/kg. Market quotations were generally stable this week, with large-volume transactions yet to materialize. Some low-priced resources from traders decreased, while high-priced resources from producers also hit bottom to some extent, narrowing the price range. The industry meeting concluded this week, with limited market feedback so far. It mainly generated expectations for future production control or energy consumption; no detailed rules on costs are available yet, and the short-term market situation remained unchanged.

Wafers: Wafers prices began to pull back this week. N-type 183 wafers were at 1.105-1.127 yuan/piece, 210R wafers were quoted at 1.108-1.146 yuan/piece, and 210mm wafers were quoted at 1.187-1.245 yuan/piece. Previously, driven by overseas demand growth and policy expectations, wafer prices saw a rapid rise; however, domestic end-use demand failed to follow suit. As solar cell prices weakened, downstream's desire to bargain down prices increased, and the price center of wafers gradually shifted downward. Going forward, close tracking of polysilicon price trends and downstream price acceptance is essential, and wafer prices are expected to remain in the doldrums in the short term.

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