High-grade Silicon Prices Broke Through 30,000 yuan/mt in Aug, Likely to Further Rise in Sep

SHANGHAI, Sep 14 (SMM) – Silicon prices extended gains in August. On the supply side, the yield rate of chemical-grade #421 silicon was relatively low due to the low quality of cleaned coal, leading to the tight supply of chemical-grade #421, of which the prices rose significantly and drove up metallurgical-grade silicon prices. The overall silicon supply was tight in August.

According to SMM survey, as of August 31, prices of #553 silicon with oxygen were around 23,250 yuan/mt in east China, an increase of 55% from the previous month, and the prices of #421 silicon were around 28,100 yuan/mt, an increase of 70% on the month. The prices of some high-grade silicon broke through 30,000 yuan/mt. Silicon prices keep hitting new highs.

Downstream aluminium alloy enterprises were hard to make profits as silicon prices exceeded aluminium prices. Supply and demand in the aluminium alloy industry weakened simultaneously.

The downstream organic silicon and polysilicon companies still had ample profit margins, and they maintained normal procurement to ensure the production. The organic silicon companies scheduled to commission in H2 2021 also started to purchase raw materials. The strong demand pushed up the silicon prices.

High-grade silicon prices have stabilised above 30,000 yuan/mt, and the prices of other silicon specifications are approaching 30,000 yuan/mt. The rainy season in Yunnan is likely to end earlier in October, which triggered local plants’ concerns of shorter production period for lack of hydropower. Therefore, silicon prices are expected to rise further in September.