Silicon prices dipped amid weaker-than-expected destocking

Trading activities in silicon metal market remained stagnant in the first after the Chinese New Year (CNY) holidays, but gradually picked up this week as polysilicon and silicone producers began to make inquiries. Even so, silicon metal powder prices extended declines.

In downstream sectors, operating rates of DMC plants changed little, keeping weekly output normal, but some planned to ramp up production in March. Low stocks and downstream stockpiling lifted post-holiday DMC prices. Operating rates of polysilicon plants were stable. The production schedules of downstream silicon wafer producers indicate that their March production will be significantly higher than in February, boosting upstream raw material demand. While new orders for silicon powder were signed, some polysilicon plants were cautious about stocking due to their bearishness towards market outlook. Operating rates of aluminum alloy plants grew this week as some have re-opened after the holidays, but remained lower than pre-holiday levels due to some companies’ late restarts.