Prices of Multiple Key Materials in the PV Industry Chain Are Under Pressure and Declining [SMM Silicon-Based PV Morning Meeting Summary]

SMM April 16 News:

Silica

Price: Silica prices remained stable this week. Currently, the mine-mouth price of high-grade silica in Inner Mongolia is 340-370 yuan/mt. The mine-mouth price of high-grade silica in Hubei is 380-430 yuan/mt. The mine-mouth price of high-grade silica in Guangxi is 360-430 yuan/mt. The mine-mouth price of high-grade silica in Guizhou is 290-330 yuan/mt.

Production: The supply side of silica is normal, with ample production supply.

Demand: Overall demand remains primarily just-in-time. Although the rainy season is approaching, a small number of silicon plants in south-west China have started stockpiling in small quantities, demand has fallen short of expectations. Coupled with the ongoing downturn in the silicon metal industry, most silicon plants lack confidence in the overall market, so other manufacturers only maintain basic just-in-time procurement.

Silicon Metal

Price: Silicon metal prices continued to decline, with pessimistic market sentiment. SMM's above-standard #553 silicon in east China is priced at 9,900-10,100 yuan/mt. Yesterday, the silicon metal 2505 contract closed at 9,170 yuan/mt, down 235 yuan/mt or 2.5% from the previous day. The futures market downturn made it difficult for silicon companies to sign orders and ship goods. Prices continued to weaken, with downstream and traders maintaining low inventory levels. Silicon prices have not stopped falling, and procurement remains mostly just-in-time.

Production:

In April, both supply and demand for silicon metal were weak. On the supply side, silicon metal capacity in the north was reduced or halted, leading to a decrease in supply, while a small number of silicon plants in the south-west resumed production, resulting in a slight increase in supply. The total supply of silicon metal decreased MoM from March.

Inventory:

Social Inventory: According to SMM statistics, the total social inventory of silicon metal in major regions on April 11 was 612,000 mt, up 4,000 mt WoW. Among them, social ordinary warehouses held 138,000 mt, flat WoW, while social delivery warehouses held 474,000 mt (including unregistered warrants and spot cargo), up 4,000 mt WoW.

Price

DMC: Current quotations are 12,500-13,500 yuan/mt. Increased inventory pressure has led some companies to offer discounts for destocking, and transaction prices fell sharply this week. Further price declines are expected.

D4: Current quotations are 13,300-13,800 yuan/mt. Prices fell this week, following the decline in DMC prices.

107 Silicone Rubber: Current quotations are 13,000-14,000 yuan/mt. Domestic 107 silicone rubber companies mainly offered discounts for shipments this week, with downstream companies purchasing at prices trending towards 13,000 yuan/mt. The price center continued to decline.

Raw Rubber: Current quotations are 14,000-14,700 yuan/mt. Transaction prices for raw rubber continued to decline this week, but it remains difficult to achieve low-price transactions in the current market.

Silicone Oil: Current quotations are 14,700-15,300 yuan/mt. The transaction price center shifted downward, with limited willingness to transact.

Production:

The operating load of domestic monomer companies continued to decrease, with some entering maintenance periods this week.

Inventory:

Inventory of domestic monomer companies further increased, while downstream companies' willingness to purchase remained low, with a strong sentiment of rushing to buy amid continuous price rise and holding back amid price downturn.

Polysilicon

Price

Yesterday, the mainstream transaction price of N-type recharging polysilicon was 39-45 yuan/kg. The price center of polysilicon continued to show a slight downward trend this week, with some transactions influenced by subsequent sentiment moving closer to the lower end of the quotation range.

Production

Polysilicon companies operated relatively stably in March, with some new capacity possibly added in April. The self-discipline meeting of silicon material companies ended around the 10th of this month, setting production quotas for major companies.

Inventory

Some orders were picked up at month-end, but recent transactions were very limited, leading to a slight increase in polysilicon inventory.

Wafer

Price

The market price of N-type 18X wafers is 1.2-1.25 yuan/piece, and the price of N-type 210RN wafers is 1.45-1.55 yuan/piece. Wafer market prices continued to pull back, with some low-price resources far below the previous mainstream transaction prices.

Production

Currently, planned production for April is 58GW+, with companies increasing production MoM from March. However, subsequent production increases are expected to be limited due to sentiment and demand.

Inventory

Battery cell production remained high in April, and compared to wafer supply, there is an expected destocking of wafers for the entire month.

High-Purity Quartz Sand  

Price

High-purity quartz sand prices remained stable this week. Domestic inner-layer sand is priced at 60,000-75,000 yuan/mt, middle-layer sand at 35,000-45,000 yuan/mt, and outer-layer sand at 20,000-25,000 yuan/mt. Imported sand quotations increased slightly, with some companies making small purchases to guard against future supply shortages. However, crucible companies still have sand inventory, so the short-term impact is relatively small.

Production

Domestic operations remained stable this week, with no changes.

Inventory

Quartz sand inventory decreased slightly, with downstream companies making small purchases.

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