The price of silicon metal remains weak, and the scheduled production of polysilicon in August is expected to drop below 140,000 mt

Silica

Price: Silica prices remain stable. By the end of this month, downstream silicon companies in the east, Henan, and Shaanxi regions will reduce or halt production. Demand for silica in north China is weakening, but there is no room for price concessions for low-grade silica in some parts of the north. Mine-mouth prices for silica remain low and stable. Currently, the ex-factory prices for low-grade silica in Yunnan are 340-360 yuan/mt. The ex-factory prices for high-grade silica in Inner Mongolia are 380-400 yuan/mt. The ex-factory prices for high-grade silica in Hubei are 420-480 yuan/mt.

Production: The proportion of silica used by silicon companies for their own needs has increased, together with a recent production reduction and shutdown of some silicon companies in the north, leading to a more relaxed overall supply of silica.

Inventory: The downstream silicon companies have not yet exhausted their raw material silica inventory, resulting in insufficient demand and procurement enthusiasm for silica.

Silicon Metal

Price: This week, the spot price of silicon metal remained weak. Yesterday, SMM's east China above-standard #553 silicon metal was priced at 11,700-11,800 yuan/mt, and #421 silicon metal was priced at 12,200-12,400 yuan/mt. This week, inquiries and transactions from downstream users and traders were sluggish, with some powder orders gradually being signed at lower prices, and market sentiment remained negative.

Production: According to SMM statistics, China's silicon metal production in June was 453,100 mt, up 11% MoM (increment of 45,100 mt). The silicon metal market continued to be sluggish in July, with some silicon companies and some silicon metal (Si≥97%) and secondary silicon plants reducing or halting production. In early August, some small silicon companies in North-east China and Henan planned maintenance, with limited impact on overall supply and demand.

Inventory:

According to SMM statistics, as of July 26, the national social inventory of silicon metal totaled 465,000 mt, up 10,000 mt WoW. Among them, the social general warehouse held 121,000 mt, flat from a week ago, and the social delivery warehouse held 343,000 mt (including parts not registered as warrants), up 10,000 mt WoW.

Silicone

Prices

DMC: Current price is 12,900 yuan/mt - 13,600 yuan/mt, prices fell this week.

D4: Current price is 14,000 yuan/mt - 14,500 yuan/mt, prices fell this week.

107 silicone rubber: Current price is 13,200 yuan/mt - 14,000 yuan/mt, prices fell this week.

Methyl vinyl silicone rubber (MVQ): Current price is 13,400 yuan/mt - 14,200 yuan/mt, prices remained stable this week.

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

Production: This week, the domestic operating load remained stable from a week ago. The subsequent operation is expected to slightly increase as the halted production lines are about to resume. Supply is expected to slightly increase.

Inventory: This week, the inventory continued to increase. It is expected that the industry inventory will increase by more than 10,000 mt in July.

Polysilicon

Prices

Yesterday, the mainstream prices for N-type polysilicon were 37-41 yuan/kg, and the mainstream prices for dense polysilicon were 34-37 yuan/kg. The transaction prices for N-type dense polysilicon remained stable, and the market sentiment was relatively strong.

Production

This week, the supply is expected to remain at 30,000 mt. Currently, there is no significant new capacity reduction, and the production cuts by leading producers are basically confirmed. The scheduled production for August is expected to drop below 140,000 mt.

Inventory

The inventory of polysilicon continues to show a downward trend, and the relatively low inventory of silicon particles contributes to the overall reduction in inventory.

PV wafer

Price

The market price for N-type 18X PV wafers is 1.1-1.12 yuan/piece, and for N-type 210 PV wafers, it is 1.6-1.65 yuan/piece. The mainstream quotation for the 18X market continues to be 1.12 yuan/piece.

Production

Some producers have resumed their operating rates. Currently, statistics show that more than four companies increased their PV wafer production in August MoM, and scheduled production is expected to continue rising.

Inventory

Due to the reduction in solar cell production, PV wafer inventory has seen a slight increase. However, as solar cell procurement activities are still ongoing, the increase in PV wafer inventory is limited.

High-purity quartz sand

Price

This week, the price of high-purity quartz sand remained stable. The domestic prices for inner layer sand were 65,000-85,000 yuan/mt, middle layer sand were 35,000-55,000 yuan/mt, and outer layer sand were 19,000-30,000 yuan/mt. Downstream crucible producers have started to pressure sand producers for lower prices, but transactions have not yet begun. To facilitate destocking, prices are expected to slightly decrease in the future.

Production

Recently, overseas supply has remained stable, and domestic producers' new production lines are steadily increasing output, leading to a continuous rise in supply.

Inventory

Inventory side, the inventory of quartz sand slightly increased this week, and crucible producers have not yet started purchasing.