Increased downstream purchases reduce polysilicon in-plant inventory, polysilicon prices stabilise

Silica

Prices: Silica prices remained stable. Sichuan silicon enterprises have basically resumed production, and the operating rate has increased. The demand for silica in south-west China has recovered, while the willingness to resume production in north-west China remains low. Although large-scale producers have increased their operating rates, they mostly use their own silica resources, with little procurement. The demand for silica in north China remains weak. Currently, the ex-factory prices of low-grade silica in Yunnan are 340-360 yuan/mt. The ex-factory prices of high-grade silica in Inner Mongolia are 400-420 yuan/mt, in Hubei are 420-480 yuan/mt, and in Guizhou are 300-340 yuan/mt.

Output: The supply of silica is relatively sufficient, with normal shipments based on orders.

Inventory: Silicon enterprises have reserved sufficient silica raw material inventory. South-west China silicon enterprises have mostly completed concentrated procurement, with little recent large-scale procurement.

Silicon metal

Prices: Yesterday, SMM price for standard #553 silicon in east China was 12,900-13,000 yuan/mt, down 50 yuan/mt. Price for above-standard #553 silicon (Huangpu Port) was 13,000-13,200 yuan/mt. Spot prices of silicon metal showed price volatility.

Output: SMM data showed that China’s silicon metal output in May was 408,100 mt, with a MoM increase of 13.8% (49,400 mt) and a YoY increase of 50.4% (136,800 mt). From January to May 2024, China’s cumulative silicon metal output was 1.823 million mt, with a YoY growth rate of 27.54% (393,800 mt). It is expected that silicon metal output in June will increase to above 420,000 mt MoM.

Inventory: SMM data showed that as of June 7th, the national social inventory of silicon metal was 394,000 mt, an increase of 1,000 mt WoW. Among them, the social general warehouse inventory was 105,000 mt, a decrease of 200 mt WoW, and the social delivery warehouse inventory was 289,000 mt (including unregistered warrant parts), an increase of 3,000 mt WoW.

Silicone

Prices

DMC: The current price is 13,400-13,900 yuan/mt, and prices remained stable this week.

D4: The current price is 14,300-14,500 yuan/mt, and prices remained stable this week.

107 silicone rubber: The current price is 13,700-14,300 yuan/mt, and prices remained stable this week.

Methyl vinyl silicone rubber (MVQ): The current price is 14,100-14,700 yuan/mt, and prices remained stable this week.

Silicone oil: The current price is 14,500-15,300 yuan/mt, and prices remained stable this week.

Output: The supply side has seen little change recently. The June production schedules were slightly reduced due to some companies shutting down for maintenance.

Inventory: Inventory slightly increased this week, with downstream companies restocking as needed and making limited purchases.

Polysilicon

Prices

Yesterday, the mainstream price of N-type polysilicon was 38-41 yuan/kg, and the mainstream price of dense polysilicon was 34-37 yuan/kg. The price of N-type polysilicon remained stable, and inventory decreased.

Output

In June, a top-tier producer in Sichuan cancelled its maintenance plan, and the monthly output is expected to recover to above 140,000 mt.

Inventory

Downstream purchase frequency increased, with some large producers and traders entering the market, leading to a decrease in polysilicon inventory.

Silicon Wafer

Prices

The market price of N-type 182 silicon wafers fell to 1.05-1.1 yuan/piece, and the price of N-type 210 silicon wafers was 1.7-1.8 yuan/piece. Silicon wafer prices remained stable, with some quotes showing slight increases, but actual transactions did not occur.

Output

Integrated mills cut output, and most specialised enterprises maintained a lower operating rate. The June output of silicon wafers fell below the expected 53 GW.

Inventory

Some downstream companies made large low-price purchases, but most orders were not picked up, resulting in only a slight decrease in silicon wafer inventory.

High-purity Quartz Sand

Prices

This week, high-purity quartz sand prices fell. The domestic price for inner layer sand was 100,000-140,000 yuan/mt, for middle layer sand was 60,000-90,000 yuan/mt, and for outer layer sand was 24,000-50,000 yuan/mt. Sand enterprises offerred discounts to close deals.

Output

Recently, the supply of high-purity quartz sand both domestically and overseas slightly decreased, and the operating rate of outer layer sand enterprises slightly declined.

Inventory

In terms of inventory, quartz sand inventory remained relatively stable this week. Concessions to close deals resulted in small batch purchases by downstream companies.