Southwest silicon metal producers resume production in June; major polysilicon producer cancels maintenance plan

Silica

Price: Silica prices are largely stable. In north China, due to the downstream silicon metal market and the increased self-use ratio by silicon companies, silica prices show a weak trend. Some high-grade silica mines are reluctant to lower prices due to cost considerations, so overall silica prices remain stable. Currently, the ex-factory prices for low-grade silica in Yunnan are 340-360 yuan/mt. In Inner Mongolia, the ex-factory prices for high-grade silica are 400-420 yuan/mt. In Hubei, the ex-factory prices for high-grade silica are 420-480 yuan/mt. In Guizhou, the ex-factory prices for high-grade silica are 300-340 yuan/mt.

Production: Mines are operating normally and delivering mainly based on orders. Recently, Xinjiang has established two new silica mining rights primarily for self-use, indicating an overall increase in supply.

Inventory: Silicon companies generally have sufficient silica stockpiles. In Yunnan, silicon companies have also completed stocking up on silica raw materials.

Silicon Metal

Price: Yesterday, above-standard 553# silicon in East China was priced at 13,000-13,200 yuan/mt. Downstream users of silicon metal continue to push for lower prices, while silicon companies maintain firm quotes, leaving little room for traders.

Production: Southwest silicon companies are gradually resuming production. The operating rate of silicon metal in June continues to increase MoM, with ample supply.

Inventory: Social inventory: As of May 31, SMM statistics show that the national social inventory of silicon metal was 393,000 mt, an increase of 7,000 mt WoW. Among them, the social general warehouse inventory was 107,000 mt, an increase of 1,000 mt WoW, and the social delivery warehouse inventory was 286,000 mt (including unregistered warrant parts), an increase of 6,000 mt WoW.

Silicone

Price

DMC: Current price is 13,400-13,900 yuan/mt, stable this week.

D4: Current price is 14,300-14,500 yuan/mt, stable this week.

107 silicone rubber: Current price is 13,700-14,300 yuan/mt, stable this week.

Methyl vinyl silicone rubber (MVQ): Current price is 14,100-14,700 yuan/mt, stable this week.

Silicone oil: Current price is 14,500-15,300 yuan/mt, stable this week.

Production: The supply side maintains a growth trend recently. Domestic DMC companies are operating at high rate, and new capacity is expected to be put into production in June, leading to an expected increase in supply.

Inventory: Inventory slightly increased this week, with downstream companies mainly restocking based on rigid demand. Market transaction activity remains low.

Polysilicon

Price

Yesterday, the mainstream price of N-type polysilicon was 40-43 yuan/kg, and the mainstream price of dense polysilicon was 34-37 yuan/kg. The price of N-type polysilicon remained largely stable, with downstream companies significantly increasing their purchasing frequency and volume, improving market sentiment.

Production

In June, a major producer in Sichuan canceled its maintenance plan, with monthly production expected to resume to over 140,000 mt.

Inventory

Downstream purchasing frequency increased, and some traders entered the market, leading to a reduction in polysilicon inventory.

Silicon Wafer

Price

The market price for N-type 182 silicon wafers fell to 1.05-1.1 yuan/piece, and the price for N-type 210 silicon wafers fell to 1.7-1.8 yuan/piece. Silicon wafer prices remain stable, with an increased sentiment of market bottoming, and the polysilicon market provides some support for silicon wafers.

Production

Integrated companies are reducing production, while most specialized companies maintain low operating rates. The production of silicon wafers in June is expected to fall below 54GW.

Inventory

Some downstream companies made significant low-price purchases, resulting in a slight reduction in silicon wafer inventory.

High-purity Quartz Sand

Price

This week, the price of high-purity quartz sand fell. The domestic price for inner layer sand is 100,000-140,000 yuan/mt, for middle layer sand is 60,000-90,000 yuan/mt, and for outer layer sand is 24,000-50,000 yuan/mt. Sand companies mainly offer discounts to close deals.

Production

Recently, the supply of high-purity quartz sand both domestically and internationally has been relatively stable. Future supply is expected to increase due to the ramp-up of new capacity.

Inventory

In terms of inventory, the market for quartz sand saw a slight recovery in transactions after the price drop, leading to a slight reduction in inventory.