Silicon metal spot prices declined as polysilicon producers held prices to support the market, leading to a stalemate

Silica

Prices: In some regions, silica prices stabilized recently. Due to the weak performance of silicon metal prices, downstream silicon metal manufacturers have a low acceptance of raw material costs. Although ex-factory prices of silica at the mines have been largely stable, some silicon companies have shifted their raw material procurement intentions towards lower-priced low-grade silica, leading to a slight weakening in demand for high-grade silica. Currently, the ex-factory prices of low-grade silica at mines in Yunnan are 340-360 yuan/mt. The ex-factory prices of high-grade silica at mines in Inner Mongolia are 390-410 yuan/mt, down by 10 yuan/mt. The ex-factory prices of high-grade silica at mines in Hubei are 420-480 yuan/mt. The ex-factory prices of high-grade silica at mines in Guizhou are 300-340 yuan/mt.

Production: Silica at the mines is being shipped according to the normal order schedule, and the overall domestic silica production is relatively sufficient.

Inventory: Downstream silicon companies have relatively sufficient silica raw material inventory reserves, with low replenishment procurement demand in the short term.

Silicon metal

Price: The spot market for silicon metal was sluggish. Yesterday, SMM reported that in east China, #553 standard silicon metal was priced at 12,300-12,400 yuan/mt, above-standard #553 silicon metal at 12,600-12,800 yuan/mt, and #441 silicon metal at 13,000-13,200 yuan/mt. Downstream users of silicon metal mainly digested their inventories, with few new orders being released, causing spot prices to continue to decline. Prices for secondary silicon and silicon metal (Si>97%) also saw some decreases due to poor sales.

Production: On the supply side, the operating rate of national silicon metal capacity remained high during the rainy season. On the demand side, the aluminum alloy and silicone industries were in a consumption off-season, and some polysilicon output continued to decline due to loss. The spot supply of silicon metal remained ample.

Inventory: According to SMM statistics, as of June 28, the national social inventory of silicon metal totaled 431,000 mt, an increase of 20,000 mt WoW. Among them, the social inventory was 114,000 mt, an increase of 1,100 mt WoW, and the social delivery warehouse inventory (including unregistered warrant) was 317,000 mt, an increase of 9,000 mt WoW.

Silicone

Prices

DMC: Current price is 13,500 yuan/mt - 13,900 yuan/mt, prices stabilized this week.

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

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

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

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

Production: Recently, the supply has seen both increases and decreases. Two domestic DMC plants started trial runs of new capacity, while one DMC plant reduced its production load. Thus, the supply side has seen both increases and decreases.

Inventory: Inventory slightly increased this week. Market transactions were impacted by weak demand, and downstream producers' willingness to purchase slightly decreased, leading to a slight increase in inventory.

Polysilicon

Prices

Yesterday, the mainstream prices of N-type polysilicon were 37-41 yuan/kg, and the mainstream prices of dense polysilicon were 34-37 yuan/kg. The sentiment among polysilicon producers to support the market was strong, leaving the price negotiations in a deadlock.

Production

Polysilicon producers saw varied operating rates, but overall, polysilicon production increased in July MoM.

Inventory

With the completion of deliveries and the further increase in polysilicon production, polysilicon inventory showed an upward trend again.

PV wafer

Price

The market price for N-type 18X silicon wafers is 1.1-1.15 yuan/piece, and the price for N-type 210 silicon wafers is 1.6-1.7 yuan/piece. The price of 18X silicon wafers stabilized, with transactions most commonly occurring at 1.1 yuan.

Production

Some PV wafer producers may increase production in July, mainly concentrated in two integrated producers. The scheduled production of PV wafers in July was up MoM.

Inventory

In June and July, the scheduled production of PV wafers compared to downstream demand is relatively insufficient, and PV wafers continue to drop, which may provide some support for PV wafer prices.

High-purity quartz sand

Price

This week, the price of high-purity quartz sand stabilized. The domestic prices for inner layer sand were 100,000-140,000 yuan/mt, middle layer sand were 60,000-90,000 yuan/mt, and outer layer sand were 24,000-50,000 yuan/mt. Recently, downstream crucible producers have not entered the market for purchasing, resulting in fewer transactions and temporarily stable quartz sand prices.

Production

Supply side, production remained stable recently, with no new plans for increasing or reducing production.

Inventory

Inventory side, quartz sand inventory saw a slight increase this week. Demand for PV wafers slightly strengthened, but crucible purchases remained primarily on a rigid need basis.