This Week, Domestic Monomer Operating Rate Slightly Declined; January Silicon Wafer Production Increased Slightly [SMM Silicon-Based PV Morning Meeting Summary]

SMM, December 25:

Silica

Prices: Silica prices remained stable. By year-end, the operating rate of the silicon metal industry stayed relatively low, with overall demand for silica raw materials being limited. Most silicon companies in north China have completed their winter stockpiling of silica raw materials. Currently, the mine-mouth prices of high-grade silica in Jiangxi are 440-460 yuan/mt, in Inner Mongolia are 360-390 yuan/mt, and in Hubei are 420-450 yuan/mt.

Production: Recent silica orders and shipments have been relatively low. The activity of order-taking and shipments at mines is expected to recover in Q1 next year, with supply remaining relatively loose in the near term.

Inventory: Silicon companies in south-west China have retained limited raw material inventory due to furnace shutdowns, while those in north China have completed their winter stockpiling of raw materials.

Silicon Metal

Prices: Spot silicon metal prices remained stable at low levels. Yesterday, the ex-factory prices of above-standard #553 silicon metal in east China were 11,300-11,400 yuan/mt, and 441# silicon metal was 11,600-11,800 yuan/mt. Silicon companies reported weak year-end demand for silicon metal, with limited market inquiries and purchases recently, and very few new orders being concluded by factories.

Production:

In December, both supply and demand for silicon metal continued to show weakness. A small number of manufacturers still plan maintenance and production cuts, leading to a significant decline in silicon metal production compared to November.

Inventory:

Social Inventory: According to SMM statistics, as of December 20, the national social inventory of silicon metal totaled 532,000 mt, down 4,000 mt WoW. Among this, inventory in general warehouses was 152,000 mt, up 1,000 mt WoW, while inventory in delivery warehouses (including unregistered warehouse warrants and spot cargo) was 380,000 mt, down 5,000 mt WoW.

Silicone

Prices:

DMC: Current prices are 12,900-13,500 yuan/mt, with the market's trading center moving upward this week.

D4: Current prices are 12,900-14,100 yuan/mt, with low-end prices increasing this week.

107 Silicone Rubber: Current prices are 13,200-13,500 yuan/mt, with the trading center moving upward.

Raw Silicone Rubber: Current prices are 13,800-14,200 yuan/mt, with the trading center moving upward.

Silicone Oil: Current prices are 14,700-16,000 yuan/mt, with a slight price increase this week.

Production:

This week, the operating rate of domestic monomer producers slightly declined, with central China monomer enterprises reducing their loads recently.

Inventory:

Downstream enterprises have not yet started procurement this week, mainly adopting a wait-and-see approach, leading to a slight increase in inventory.

Polysilicon

Prices:

Yesterday, the mainstream price of N-type polysilicon was 39-42 yuan/kg, and the mainstream price of dense polysilicon was 35-36 yuan/kg. Polysilicon prices remained stable this week, with the Guangzhou Futures Exchange announcing a benchmark price of 38.6 yuan/kg for polysilicon futures.

Production:

December supply was largely in line with previous expectations. A slight reduction in supply is expected in January, but the overall scale of reduction will be limited.

Inventory:

Orders on hand have increased for many manufacturers, mainly due to the gradual signing of January orders, leading to a slight decline in inventory.

Silicon Wafers

Prices:

The market price of N-type 18X silicon wafers is 1.05-1.1 yuan/piece, and N-type 210RN silicon wafers are 1.12-1.15 yuan/piece. Prices of 183 silicon wafers continued to rise this week, with many January orders already quoted at 1.1 yuan/piece.

Production:

Silicon wafer production schedules for January are not expected to change significantly, with first- and second-tier enterprises leading the production increase, resulting in a slight rise in silicon wafer output.

Inventory:

Inventory continues to decline slightly, approaching the safety threshold, with some shipments under tight scheduling.

High-Purity Quartz Sand 

Prices:

High-purity quartz sand prices remained stable this week. Domestic prices for inner-layer sand are 60,000-75,000 yuan/mt, mid-layer sand is 35,000-45,000 yuan/mt, and outer-layer sand is 19,000-25,000 yuan/mt. Current market transactions are limited, with some crucible enterprises making just-in-time procurement at lower prices.

Production:

This week, the operating rates of both domestic and overseas quartz sand enterprises remained relatively stable.

Inventory:

As some quartz sand enterprises began reducing production due to declining profits, the rate of inventory accumulation slowed, with a gradual adjustment in total inventory.

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