Prices of Metallurgical-grade Silicon Fell Slightly and the Downstream Purchased as Needed

SHANGHAI, July 29 (SMM) - As of July 29, the prices of 553# silicon without oxygen stood at 16,300-16,600 yuan/mt in east China, down 350 yuan/mt or 2% on the week; 553# silicon with oxygen 17,400-17,600/mt, down 250 yuan/mt or 1% on the week; 441# silicon 18,000-18,200 yuan/mt, down 100 yuan/mt or 1% on the week; 421# silicon 18,400-18,600 yuan/mt, flat from last week. As some silicon factories were more willing to ship this week, the quotations fell. Among them, the prices of 553# silicon without oxygen fell more obviously. Although some silicon factories held the prices firm, prices of silicon metal showed signs of declining due to the poor orders for silicone and aluminium alloys and the decline in overseas inquiries.

On the demand side, the operating rates of aluminium alloy enterprises diverged. The operating rates of most leading aluminium alloy enterprises increased due to the improved order volume. However, most small and medium-sized enterprises suspended the production due to the poor sales performance. And the supply and demand of aluminium alloy was weak. In this scenario, purchasers were wait-and-see and purchased as needed in light of high prices.

The overall operating rates of the polysilicon changed little on the month. The project of GCL in Baotou with 100,000 mt of polysilicon capacity was put into operation in July. The mainstream transaction prices of dense polysilicon stood at 289-308 yuan/kg. Grinding plants continued to restock and mainly purchased the low-grade 4 and 5 series silicon.

The silicone prices slightly increased this week. As the monthly contract of 421# silicon has not yet been signed, most silicone monomer companies digested their inventory and purchased in the form of small orders. The prices of DMC on Friday was 19,800-20,300 yuan/mt. It is expected that the DMC prices may fluctuate sideways in the short term and the operating rates of silicone monomer enterprises may increase slightly in August.

At present, the silicon metal prices fall. The social inventory and in-plant inventory are relatively high compared with in previous years. The market is still wait-and-see amid the sufficient supply and weak demand. Therefore, although the silicon factories tend to hold the prices firm, the silicon metal prices are expected to decline next week.