SMM weekly silicon metal market review and forecast

This week, the spot prices of silicon metal remained stable overall, with slight increases in the transaction prices of certain specifications. As of August 29, the prices in east China for standard #553 silicon metal were 11,300-11,500 yuan/mt (flat WoW), above-standard #553 silicon metal were 11,500-11,600 yuan/mt (up 50 yuan/mt WoW), #421 silicon metal were 12,000-12,100 yuan/mt (flat WoW), and #421 silicon metal (for silicone use) were 12,400-12,800 yuan/mt (flat WoW). In the futures market, the most-traded Si2411 contract continued to run strong during the week and broke the 10,000 yuan/mt mark, reaching a high of 10,170 yuan/mt. Hoshine Silicon's official quotation also generally increased by 200 yuan/mt on August 29, mainly due to smooth order intake over the past week and reduced inventory pressure.
The operating rate of polysilicon enterprises basically remained stable, with polysilicon production expected to be around 30,400 mt this week. Recently, orders for silicon powder and silicon lumps from polysilicon enterprises have been gradually released. The order price for silicon powder (Si≥99%) is around 12,000 yuan/mt, with some low-priced orders last week at 11,550 yuan/mt. The delivery price for large orders of silicon lumps (Si≥99%) signed directionally is around 11,200 yuan/mt.
The operating rate of silicone companies slightly decreased, mainly due to the maintenance of a small amount of monomer capacity. Most monomer companies focused on depleting inventory during the week, while some monomer companies had restocking needs recently.
The operating rate of aluminum alloy enterprises remained basically stable. As the market rebounded slightly, it stimulated the release of demand orders from some alloy enterprises. Since orders from alloy factories are mostly scattered, the main participants in this slight rebound in spot prices were alloy factories.

After the major factories raised their prices recently, many silicon companies also followed suit, increasing their prices by 100-200 yuan/mt. Low-priced supplies disappeared, and the transaction focus of above-standard #553 silicon metal slightly shifted upwards. However, downstream users, especially those in polysilicon, may not readily accept the price increase. The market may enter a bargaining phase, with the spot price of silicon metal expected to fluctuate rangebound in the near term, lacking conditions for volatility.