Market sentiment is positive, and silicon metal prices continue to rise [SMM Silicon-based PV Morning Meeting Summary]

SMM July 23 News:

Silicon coal

Prices: This week, prices in some regions of the silicon coal market have slightly increased. In Inner Mongolia and Ningxia, due to a 15 yuan/mt increase in the price of raw coal, silicon coal prices have risen by 10 yuan/mt. Prices in other regions remain stable. Currently, the average price of non-caking silicon coal in Xinjiang is 710 yuan/mt, the average price of caking silicon coal in Xinjiang is 1,250 yuan/mt, the average price of silicon mixed coal in Gansu is 840 yuan/mt, the average price of pellet coal is 960 yuan/mt, the average price of silicon mixed coal in Ningxia is 885 yuan/mt, and the price of pellet coal is 1,050 yuan/mt.

Supply: Most coal washing plants continue to arrange production plans based on order quantities. Affected by the resumption of production at some silicon plants in south-west China during the rainy season, demand has slightly increased, and the operating rate has also risen accordingly.

Demand: Just-in-time procurement is the main approach. However, influenced by the resumption of production at some silicon plants in south-west China during the rainy season, overall demand has slightly increased.

Silicon metal

Prices: Yesterday, the main silicon metal contract hit the daily price limit, closing at 9,655 yuan/mt. Mainly driven by strong macro sentiment and continuous policy stimulus, spot market quotes have maintained an upward trend. The spot-futures price spread quoted by futures traders has slightly decreased compared to before, while absolute prices continue to rise. Keep an eye on actual market transactions.

Production:

With the continuous increase in silicon metal prices, silicon enterprises' profits have improved, and the weekly production of silicon metal is expected to continue to increase.

Inventory:

Social inventory: According to SMM statistics, the total social inventory of silicon metal in major regions was 547,000 mt on July 17, a decrease of 4,000 mt WoW. Among them, social general warehouses held 120,000 mt, a decrease of 4,000 mt WoW, while social delivery warehouses held 427,000 mt (including unregistered warrants and spot cargo), unchanged WoW. (Excluding Inner Mongolia, Gansu, etc.)

Silicone

Prices

DMC: Currently quoted at 11,600 yuan/mt - 12,500 yuan/mt. This week, domestic DMC prices have risen sharply. An unexpected accident at an east China silicone enterprise led to the shutdown of some production capacity, spreading panic in the domestic market and improving market transaction sentiment.

D4: Currently quoted at 12,300 yuan/mt - 13,200 yuan/mt. This week, D4 prices have increased.

107 silicone rubber: Currently quoted at 12,500 yuan/mt - 13,000 yuan/mt. This week, 107 silicone rubber prices have increased.

Raw silicone rubber: Currently quoted at 12,600 yuan/mt - 13,200 yuan/mt. This week, raw silicone rubber prices have increased.

Silicone oil: Currently quoted at 14,000 yuan/mt - 14,500 yuan/mt. This week, silicone oil prices have increased.

Production:

Recently, monomer operating rates have declined, with some monomer production capacity in east China shutting down.

Inventory:

This week, the inventory of monomer enterprises has decreased, and downstream enterprises have entered the market for procurement.

Polysilicon

Price

Yesterday, the quoted price for N-type recharging polysilicon was 42-49 yuan/kg, and for granular polysilicon, it was 41-45 yuan/kg. Currently, the market is relatively stable compared to the previous period, with some new transactions occurring. Yesterday, futures prices surged significantly, boosting the sentiment of some producers.

Production

Currently, there are no major changes planned for the production schedule in July. The total polysilicon production is expected to approach the 110,000 mt mark, with significant increases coming from south-west China.

Inventory

This week, polysilicon inventory continued to decline. Some orders signed earlier are still being shipped, but the rate of inventory reduction has slowed down significantly. Meanwhile, the inventory of polysilicon at crystal pulling plants has increased.

Wafer

Price

The market price for N-type 18X wafers is 1.1 yuan/piece, and for N-type 210RN wafers, it is 1.25 yuan/piece. Yesterday, wafer prices remained stable overall, with some low-priced items experiencing a rebound. Currently, upstream sentiment is improving, and some wafer enterprises are considering further actions.

Production

In July, wafer plant operations have been relatively weak. With the increase in wafer prices, some individual enterprises have preliminary plans to restart furnaces, but the specific implementation needs to be further observed.

Inventory

Recently, influenced by the increase in polysilicon quoted prices and wafer prices, downstream enterprises have accelerated their cargo pick-up pace, leading to a decrease in wafer inventory.

High-purity quartz sand

Price

Currently, the domestic price for inner-layer sand is 59,000-64,000 yuan/mt, for middle-layer sand is 27,000-33,000 yuan/mt, and for outer-layer sand is 17,000-22,000 yuan/mt. This week, the domestic price for high-purity quartz sand has remained stable. With the increase in wafer prices, quartz sand enterprises' willingness to offer discounts for transactions has decreased recently, and there is a high level of back-and-forth negotiations between upstream and downstream.

Production

This week, quartz sand production operations have temporarily remained stable, with enterprises mainly producing based on demand.

Inventory

The inventory of quartz sand enterprises still maintains a slight upward trend.