SMM Weekly Analysis Of Chinese Silicon Metal Market Fundamentals

SHANGHAI, Aug 28 (SMM) – Falling inventory allowed silicon manufacturing companies to raise offers last week. Low-priced supply in the market was scarce, and the silicon market prices were relatively strong.

Supply and demand

Supply: some silicon companies increased production, driving a small increase in nationwide supply.

Demand: The operating rates in the aluminum alloy industry are relatively stable, and companies were replenishing their inventories according to demand. In the field of silicone, the resumption of production at some DMC plants has led to an increase in demand for silicon metal. However, downstream of DMC plants have a wait-and-see attitude towards purchasing DMC, resulting in temporarily stable DMC prices. As for polysilicon, production capacity continues to grow. In the past two days, polysilicon and grinding powder companies have made purchases one after another, which has driven up the price of silicon metal.

Stocks:

According to SMM statistics, as of August 25th, the total social inventory of silicon metal in three regions was 271,000 mt, an increase of 13,000 mt compared to the previous week. The inventory increase in Kunming, Guangdong, and Shanghai regions was the largest. Among them, the inventory increase in Kunming region was mainly concentrated in delivery warehouses, with a small portion in regular warehouses. In terms of the spot market, the actual circulation of spot transactions was relatively tight.