Silicone Monomer Companies' Operating Rates Are Expected to Decline Further, While Polysilicon Companies' Operating Rates Remain Stable [SMM Silicon-Based PV Morning Meeting Summary]

SMM March 19 News:

Silica

Prices: Silica prices remained stable. The resumption time for silicon plants in south-west China during the rainy season remains uncertain. However, as time progresses, raw material procurement is expected to gradually commence at the latest within this month, with a potential improvement in demand for silica raw materials. Currently, the mine-mouth price of high-grade silica in Jiangxi is 430-460 yuan/mt, in Inner Mongolia is 350-380 yuan/mt, and in Hubei is 400-450 yuan/mt.

Production: The supply side of silica remains normal. However, due to the lack of large-scale concentrated procurement demand from downstream silicon metal plants, the overall supply remains relatively ample.

Inventory: Silicon plants in south-west China have mostly reported that production resumption plans during the rainy season are still unclear, and there are currently no significant restocking plans for silica raw materials.

Silicon Metal

Prices: Spot silicon metal prices remained stagnant and consolidated at low levels during the week. Yesterday, SMM's east China above-standard #553 silicon was priced at 10,300-10,500 yuan/mt, while the most-traded futures contract fluctuated rangebound around 9,950 yuan/mt. The downstream silicon market saw sluggish inquiries and weak transactions.

Production:

The operating rate of large-scale silicon enterprises increased steadily, while that of small and medium-sized enterprises weakened. Silicon metal supply increased slightly WoW.

Inventory:

Social Inventory: As of March 14, SMM statistics showed that the national social inventory of silicon metal totaled 594,000 mt, down 5,000 mt WoW. Among this, general social warehouses held 139,000 mt, down 2,000 mt WoW, and social delivery warehouses held 455,000 mt (including unregistered warrants and spot cargo), down 3,000 mt WoW.

Silicone

Prices:

DMC: Current prices are 13,800-14,300 yuan/mt. Market prices are expected to rise by approximately 500 yuan/mt this week.

D4: Current prices are 13,900-14,500 yuan/mt. Market prices are expected to rise by approximately 500 yuan/mt this week.

107 Silicone Rubber: Current prices are 14,100-14,600 yuan/mt. Market prices are expected to rise this week.

Raw Silicone Rubber: Current prices are 14,300-15,000 yuan/mt. Market prices are expected to rise this week.

Silicone Oil: Current prices are 15,300-16,000 yuan/mt. Market prices are expected to rise this week.

Production:

Recently, some monomer enterprises are expected to further increase maintenance loads, with the industry's operating rate projected to decline to around 60%, indicating significant production cuts.

Inventory:

Monomer enterprise inventories increased slightly WoW this week. However, inventory levels are expected to decline as downstream procurement picks up.

Polysilicon

Prices:

Yesterday, the mainstream transaction prices for N-type recharging polysilicon were 39-45 yuan/kg. Polysilicon prices remained stable this week, with limited market transactions as the market is still in the early stages of order signing, and major enterprises are temporarily observing.

Production:

Due to the impact of calendar days in March, polysilicon production schedules are expected to increase, with overall operating rates remaining stable.

Inventory:

Market transactions remained limited recently. The overall supply and demand in March were tightly balanced, with slight fluctuations in polysilicon inventory.

Silicon Wafer

Prices:

The market price for N-type 18X silicon wafers is 1.18-1.2 yuan/piece, and for N-type 210RN silicon wafers is 1.35-1.4 yuan/piece. Silicon wafer prices remained stable. After the price increase in March, other sizes except for 210R faced some resistance to the price hike.

Production:

Silicon wafer production in March was revised to exceed 52 GW, with some top-tier enterprises maintaining relatively high operating rates.

Inventory:

In March, battery production schedules remained higher than silicon wafer production, with future demand expected to improve, leading to continued destocking expectations.

High-Purity Quartz Sand 

Prices:

High-purity quartz sand prices remained stable this week. Domestic inner-layer sand prices were 60,000-75,000 yuan/mt, middle-layer sand prices were 35,000-45,000 yuan/mt, and outer-layer sand prices were 20,000-25,000 yuan/mt. Market price centers remained stable this week, with downstream enterprises yet to fully enter the market, resulting in limited trading volumes.

Production:

Domestic operations remained stable this week, with overseas production lines also maintaining stable output. Overall production increased slightly.

Inventory:

Quartz sand inventory increased slightly, but the growth was limited. Future inventory levels may decline as procurement demand starts to decrease.

》View SMM Silicon Product Prices