Silicon Metal Prices Under Pressure; Silicone Product Prices Raised Again [SMM Silicon-Based PV Morning Meeting Summary]

SMM, February 26:

Silica

Prices: Silica prices remained stable, while the silicon metal market continued to be weak. Overall operating rates remained relatively low, and some silicon plants in south-west China indicated no short-term plans for raw material restocking. Overall demand for raw silica was insufficient. Currently, the mine-mouth price of high-grade silica in Jiangxi is 430-460 yuan/mt, in Inner Mongolia is 350-380 yuan/mt, and in Hubei is 400-450 yuan/mt.

Production: Mines are operating and shipping normally, but due to insufficient downstream demand, the overall supply side of silica remains relatively loose.

Inventory: Some silicon plants in south-west China reported no restocking plans in the short term. In the north, operating silicon plants are mainly consuming existing raw material inventories. Attention is needed to see if there will be restocking plans next month.

Silicon Metal

Prices: Yesterday, in east China, above-standard #553 silicon was priced at 10,600-10,800 yuan/mt, #441 silicon at 11,100-11,200 yuan/mt, and #3303 silicon at 11,900-12,000 yuan/mt. Downstream users purchased on demand, and spot silicon metal prices saw a slight decline. The price spread between high- and low-grade silicon widened compared to before.

Production:

Operating rates of silicon metal enterprises remained largely stable, with some northern enterprises increasing production. Weekly silicon metal supply showed slight fluctuations.

Inventory:

Social Inventory: According to SMM statistics, as of February 21, the social inventory of silicon metal in some regions nationwide totaled 546,000 mt, up 2,000 mt WoW. Among this, general social warehouses held 50,000 mt, up 1,000 mt WoW, and social delivery warehouses held 396,000 mt (including unregistered warehouse warrants and spot cargo), up 1,000 mt WoW. (This inventory data excludes Inner Mongolia, Ningxia, and other regions.)

Silicone

Prices:

DMC: Current quotations are 13,500-14,300 yuan/mt. This week, mainstream quotations from monomer enterprises increased again, with leading enterprises raising DMC prices by 500 yuan/mt. The transaction center is expected to continue rising.

D4: Current quotations are 13,500-14,600 yuan/mt, with market prices up compared to last week.

107 Silicone Rubber: Current quotations are 13,800-14,300 yuan/mt. Recently, downstream rubber enterprises have raised their quotations, and supported by DMC costs, 107 silicone rubber prices also increased this week.

Raw Silicone Rubber: Current quotations are 14,300-15,000 yuan/mt. Market prices rose this week, with quotations from north-west China enterprises increasing to 15,000 yuan/mt, up 500 yuan/mt.

Silicone Oil: Current quotations are 15,000-15,800 yuan/mt, with market prices rising.

Production:

This week, domestic monomer enterprises maintained low operating rates, with the industry's operating rate below 70%. It is expected to remain unchanged in March.

Inventory:

This week, monomer enterprise inventories slightly increased. After another round of price hikes, downstream resistance became evident, with most players adopting a wait-and-see approach.

Polysilicon

Prices:

Yesterday, the mainstream transaction price of N-type recharging polysilicon was 39-45 yuan/kg. Polysilicon prices remained stable this week, with heavy market sentiment as downstream production schedules were undecided and no concentrated order signing period occurred. Price fluctuations were relatively small.

Production:

In March, due to the impact of calendar days, polysilicon production schedules may increase, with some enterprises potentially undergoing maintenance.

Inventory:

Overall inventory remained largely stable, with a slight increase in polysilicon inventory this week.

Silicon Wafer

Prices:

The market price for N-type 18X silicon wafers is 1.16-1.18 yuan/piece, and for N-type 210RN silicon wafers is 1.26-1.35 yuan/piece. Silicon wafer prices remained stable, with limited market transactions.

Production:

February production schedules increased slightly MoM. While March module demand is expected to be strong, some top-tier enterprises may implement production cuts due to self-discipline.

Inventory:

Post-holiday silicon wafer transactions remained slightly below supply levels, leading to continued inventory accumulation. Inventory increased MoM, but the extent was minimal.

High-Purity Quartz Sand 

Prices:

This week, high-purity quartz sand prices remained stable. Domestic inner-layer sand prices were 60,000-75,000 yuan/mt, middle-layer sand prices were 35,000-45,000 yuan/mt, and outer-layer sand prices were 19,000-25,000 yuan/mt. Prices are temporarily stable.

Production:

Sand enterprise operating rates increased slightly WoW, and overseas production lines also remained relatively stable, with a slight increase in supply.

Inventory:

This week, domestic sand enterprise inventories continued to increase slightly.

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