The Silicon PV Main Material Market Operated Steadily During the Holiday [SMM Silicon-Based PV Morning Meeting Summary]

SMM, February 5:

Silica

Prices: Silica prices remained stable. During the Chinese New Year holiday, silica prices held steady, with sluggish market transactions. Overall raw material procurement transactions are expected to gradually recover after the holiday, with concentrated procurement activity anticipated to resume in mid-to-late February. Currently, mine-mouth prices for high-grade silica in Jiangxi are at 440-460 yuan/mt, in Inner Mongolia at 360-390 yuan/mt, and in Hubei at 420-450 yuan/mt.

Production: The supply side of silica remains relatively ample, with mining and transportation activities gradually resuming after the holiday.

Inventory: Downstream silicon metal manufacturers have recently focused on consuming existing silica raw material inventories, with plans for inventory replenishment expected to gradually resume around mid-to-late February.

Silicon Metal

Prices: Before the holiday, above-standard #553 silicon metal in east China was priced at around 10,800-10,900 yuan/mt. During the Chinese New Year holiday, the silicon metal market was inactive with minimal transactions. Post-holiday, attention will focus on changes in buyer and seller sentiment.

Production:

In January, silicon metal production decreased by 8.3% MoM and 12.2% YoY. In February, operating rates among silicon enterprises of different scales are expected to continue diverging. Some top-tier enterprises in Xinjiang began partial capacity resumption in late January, while small- and medium-sized enterprises are expected to see weaker operating rates.

Inventory:

Social Inventory: According to SMM statistics, as of January 24, before the holiday, the total social inventory of silicon metal in major regions nationwide was 540,000 mt, including 151,000 mt in general warehouses and 389,000 mt in delivery warehouses (including unregistered warehouse warrants and spot cargo). During the holiday, reduced logistics capacity led to subdued warehouse inflows and outflows, with downstream focusing on inventory consumption. Social and in-plant inventories are expected to see a slight increase.

Silicone

Prices:

DMC: Current prices are 12,500-13,500 yuan/mt. During the holiday, some monomer enterprises maintained their quotations, but downstream stockpiling has not yet started, keeping prices stable.

D4: Current prices are 12,600-14,000 yuan/mt, with market prices remaining stable during the holiday.

107 Silicone Rubber: Current prices are 12,700-13,500 yuan/mt, with market prices stable during the holiday.

Raw Silicone Rubber: Current prices are 13,600-14,200 yuan/mt, with market prices stable during the holiday.

Silicone Oil: Current prices are 14,000-15,500 yuan/mt, with market prices stable during the holiday.

Production:

During the holiday, some monomer enterprises reduced operating loads, with certain production lines in central China undergoing maintenance. Additionally, other monomer enterprises plan to begin maintenance soon, and production is expected to decline subsequently.

Inventory:

Due to the suspension of logistics during the Chinese New Year holiday, inventory levels at monomer enterprises generally increased.

Polysilicon

Prices:

Yesterday, mainstream transaction prices for N-type recharging polysilicon were 39-45 yuan/kg. During the holiday, the polysilicon market remained stable with limited transactions.

Production:

Polysilicon production in February is expected to see a slight decline, with operating rates remaining relatively unchanged due to offsetting increases and decreases. The reduction is mainly attributed to the impact of calendar days.

Inventory:

During the holiday, order signing and shipments significantly decreased. Polysilicon manufacturers maintained normal production, leading to an increase in inventory levels.

Wafers

Prices:

Current market prices for N-type 18X wafers are 1.18-1.18 yuan/piece, and for N-type 210RN wafers are 1.3-1.35 yuan/piece. N-type wafer prices remained stable during the holiday.

Production:

Previously, wafer enterprises, especially integrated enterprises, had been ramping up production. Wafer operating rates are expected to see a slight increase in February.

Inventory:

During the holiday, wafer transactions decreased, and market inventory continued to accumulate, with a further MoM increase.

High-Purity Quartz Sand 

Prices:

During the holiday, high-purity quartz sand prices remained stable. Domestic prices for inner-layer sand were 60,000-75,000 yuan/mt, for middle-layer sand were 35,000-45,000 yuan/mt, and for outer-layer sand were 19,000-25,000 yuan/mt. There were no transactions in the domestic market.

Production:

This week, industry operating rates remained low, with quartz sand enterprises yet to fully resume production. Some enterprises are still on holiday and have not restarted operations.

Inventory:

This week, high-purity quartz sand inventory saw a slight increase. Although production on the supply side significantly declined during the holiday, a few enterprises maintained operations. With downstream enterprises on holiday, transactions were limited, leading to an inventory increase.

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