SHANGHAI, Aug 26 (SMM) - As of August 26, the prices of 553# silicon without oxygen stood at 19,400-19,700 yuan/mt in east China, down 2,050 yuan/mt or 9% on the week; 553# silicon with oxygen 20,000-20,500/mt, down 1,900 yuan/mt or 9% on the week; 441# silicon 20,800-21,000 yuan/mt, down 1,650 yuan/mt or 7% on the week; 421# silicon 21,400-21,600 yuan/mt, down 1,500 yuan/mt or 7% on the week. The silicon prices declined rapidly because some traders quoted much lower than silicon factories to take profits in the short term. On the other hand, as silicon prices rose significantly in the early stage, the market demand was weak and the orders were scarce amid the wait-and-see sentiment. Meanwhile, due to the power rationing, the operating rates of aluminium alloy and polysilicon enterprises in Sichuan and Chongqing declined.
On the demand side, as the power supply in Sichuan, Chongqing, Jiangsu and Zhejiang did not improve, the operating rates of aluminium alloy enterprises in these regions rarely increased, hence the enterprises purchased silicon metal on rigid demand. The operating rates of silicone factories rose slightly. However, the downstream demand did not improve, thus the prices of DMC fluctuated within a narrow range. The silicone monomer enterprises were wait-and-see at the moment. The polysilicon factories in Sichuan were still in suspension due to the power rationing. Some polysilicon enterprises suspended the tender projects and were less willing to purchase due to the decline in silicon prices.
On August 20, Sichuan announced that the power rationing is extended to 24:00, August 25, but the impact on market was limited as the market players have already priced in the expected production cuts. At present, the silicon factories in Sichuan have not received any notice of production resumption. According to the survey, some manufacturers have started to overhaul. It is expected that the capacity of silicon factories in Sichuan will be released in early September. The downstream enterprises and overseas market tend to suspend the procurement due to the rapid decline in silicon prices. In the short term, the silicon metal prices are expected to further decline and may stabilise at the end of the month or at the beginning of next month with the release of downstream demand.
