SMM silicon market briefing: supply side maintains loose downstream peak season silicon price can be expected

SMM, September 12 / PRNewswire-Asianet /-

Supply: in early September, some high-cost production capacity resumed in Chongqing, Hunan, Inner Mongolia and other places, and the number of furnaces opened in Yunnan and Xinjiang also increased compared with the previous month. The supply side is still more abundant.

Demand: Jiangsu and Zhejiang, Hebei, Guangdong and other provinces some downstream aluminum alloy enterprises have hoarding phenomenon, there are two reasons: peak season orders increase, National Day holiday stock. Silicone polysilicon enterprises are mostly on-demand procurement.

Price: no oxygen 553 # silicon Whampoa delivery price in 11700 to 11800, spot price is strong,; oxygen 551 # Tianjin transaction price 12250 to 12400, Hesheng, hope that the two large factories offer stable; 3303 # Huangpu about 13100, Tianjin high price in 13800, the north-south price difference is large; This month, the bid price of 421 # in silicone plant is about 13800 yuan per ton (accepted to the price), up 300 yuan per ton from the previous month. The rise is due to the suspension of production in Gucheng mine, and it is more difficult for Sichuan silicon plant to purchase silica.

Lido: southern silicon plants, which have been in production for nearly five months since October, may face poor furnace conditions and declining shipments, which are likely to cut production ahead of the dry season; consumption rose slightly downstream from September to October.

Bearish: Xinjiang new production capacity increased; social inventory is on the high side compared with the same period last year.

SMM point of view: double section before the downstream stock increase, the spot relatively tight 5-word silicon has the possibility of a small increase, metallurgical grade high-grade silicon consumption is difficult to improve, the possibility of price weakness and stability is greater; Due to the shortage of local ore supply and short-term recovery, chemical grade silicon may continue to rise slightly, but it is difficult to rise only for some downstream enterprises which are dependent on Sichuan silicon.

Other: 1. CAA: in August, production and sales of new energy vehicles were 99000 and 101000 respectively, an increase of 39 per cent and 49.5 per cent respectively over the same period last year. 2. Between January and August, production and sales of new energy vehicles were 607000 and 601000 respectively, an increase of 75.4 per cent and 88 per cent respectively over the same period last year. 3. Crude oil and gasoline prices rose the most since late June in New York on Tuesday as Hurricane Florence threatened the U. S. East Coast fuel market and sanctions began restricting Iran's oil exports. 4. The people's Bank of China launched a 60 billion yuan reverse buyback operation today. (SMM Yang Xiaoting)

If you would like to know more about the market information and market trends, or have other information needs, please dial 021 # 51666895, contact: Ms. Yang.