Silicon metal prices hit a new low again, with polysilicon, wafer, and high-purity quartz sand prices all declining [SMM Silicon-based PV Morning Meeting Summary]

SMM News on May 21:

Silica

Prices:

Silica prices remained stable this week, with significant regional price differences. Currently, the ex-factory prices of high-grade silica at mine mouths in Hubei range from 350-380 yuan/mt. In Jiangxi, the ex-factory prices of high-grade silica at mine mouths range from 410-450 yuan/mt. In Inner Mongolia, the ex-factory prices of high-grade silica at mine mouths range from 320-370 yuan/mt. In Guizhou, the ex-factory prices of high-grade silica at mine mouths range from 290-330 yuan/mt.

Supply:

The overall production of silica at mine mouths is relatively loose, with stable supply.

Demand:

The demand side is showing weakness. Amid the current downturn in the silicon metal market, the operating rates of silicon metal plants in regions such as north-west and north China remain low. Consequently, they are cautious about procuring raw silica, only maintaining small-scale just-in-time restocking. Although the rainy season is approaching in south-west China, due to poor market expectations and the pressure of overcapacity in the industry, silicon plants have weak willingness to resume production, leading to difficulty in boosting silica demand.

Silicon Metal

Prices:

Spot and futures prices of silicon metal continued to decline. Yesterday, SMM reported that the price of oxygen-blown #553 silicon in east China ranged from 8,700-8,900 yuan/mt. The Si2507 futures contract was in the doldrums, breaking below 8,000 yuan/mt during the day. The most-traded contract closed at 7,940 yuan/mt yesterday, down 2.3%. Market confidence support is weak, and spot price expectations remain weak.

Production:

The silicon metal market balance remained relatively loose from January to March. From April to May, both supply and demand weakened, and the balance began to shift towards slight destocking, but the magnitude was relatively small. In June, there are expectations for production increase on the supply side, while demand is basically stable, and the balance may shift towards looseness again.

Inventory:

Social Inventory: According to SMM statistics, the total social inventory of silicon metal in major regions was 599,000 mt on May 15, up 3,000 mt WoW. Among them, social general warehouses held 132,000 mt, down 1,000 mt WoW, while social delivery warehouses held 467,000 mt (including unregistered warrants and spot cargo), up 4,000 mt WoW. (Excluding regions such as Inner Mongolia and Gansu)

Silicone

Prices

DMC: The current quotation ranges from 11,300 yuan/mt to 11,600 yuan/mt. This week, the transaction price range of domestic DMC remained stable temporarily. With end-use markets entering the procurement phase, some monomer enterprises have slightly raised their quotations to 11,600 yuan/mt recently. Affected by high inventory levels, prices have been fluctuating slightly recently.

D4: The current quotation ranges from 11,600 yuan/mt to 12,300 yuan/mt. This week, the transaction price of D4 remained stable, with downstream enterprises making just-in-time procurement.

107 silicone rubber: Current quotes range from 11,800 yuan/mt to 12,700 yuan/mt. This week, the price of 107 silicone rubber dropped slightly. The recovery speed of demand in fields such as room-temperature silicone rubber fell short of expectations, and leading enterprises offered partial discounts to facilitate sales, leading to an overall decline in the market price of 107 silicone rubber.

Raw silicone rubber: Current quotes range from 12,900 yuan/mt to 13,500 yuan/mt. This week, the operating rate of high-temperature silicone rubber enterprises increased. Moreover, in the subsequent window period, the demand for high-temperature silicone rubber is expected to continue rising, resulting in a slight correction in the price of raw silicone rubber.

Silicone oil: Current quotes range from 14,000 yuan/mt to 14,500 yuan/mt. This week, the price of silicone oil remained stable. The procurement volume from end-users was limited. Although demand in the textile sector increased slightly, the trading volume remained constrained.

Production:

Recently, the operating rate of monomer enterprises increased slightly, as some monomer enterprises completed their plant maintenance. The industry's operating rate is expected to rise above 60%.

Inventory:

This week, the inventory levels of monomer enterprises decreased slightly. Driven by trading volume, inventory levels are expected to continue declining.

Polysilicon

Price

Yesterday, the mainstream transaction prices for N-type recharging polysilicon were 36-39 yuan/kg, and the N-type polysilicon price index was 36.25 yuan/kg. Market transactions gradually picked up, and polysilicon prices declined. The transaction prices for dense polysilicon from some large manufacturers trended towards 35 yuan/kg.

Production

In May, polysilicon production decreased slightly by approximately 2,000 mt MoM. Multiple enterprises cut production. On the 14th, an industry conference was held again, and the market is paying attention to the fact that the subsequent operating rates of some enterprises may be lower than previously expected.

Inventory

Polysilicon inventory still faces significant pressure, with large disparities among enterprises. Overall inventory levels have not significantly improved.

Wafer

Price

The market prices for N-type 18X wafers range from 0.93-0.95 yuan/piece, and for N-type 210RN wafers, they range from 1.05-1.1 yuan/piece. At the beginning of the week, wafer market prices slightly decreased, showing a weak trend. Small manufacturers lowered their quotes for large orders, but some leading manufacturers gradually strengthened their stance to stand firm on quotes.

Production

In May, the actual production of wafer enterprises declined compared to expectations at the beginning of the month. Based on the Q2 production schedules reported by manufacturers at the association meeting in June, production schedules may decrease.

Inventory

Recently, market transactions have remained relatively limited, with cautious procurement sentiment. Inventory levels have been largely stable.

High-purity quartz sand

Price

Currently, the prices for domestic inner-layer sand are 60,000-70,000 yuan/mt, middle-layer sand are 33,000-45,000 yuan/mt, and outer-layer sand are 18,000-25,000 yuan/mt. This week, the transaction prices for spot orders from domestic imported sand traders decreased. Moreover, negotiations on long-term contract prices have recently begun, and the subsequent price trend for quartz sand is expected to be downward.

Production

This week, the operation of quartz sand remained stable, with domestic enterprises' facilities starting up and shutting down in parallel.

Inventory

This week, the inventory of sand enterprises increased slightly, while the demand for wafers continued to decline.

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