Silicon Prices Stabilise as Downstream Enterprises Purchase as Needed

Published: Apr 28, 2023 16:15

Source: SMM

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Spot silicon metal prices fell across the board this week. As of April 28, the prices of standard #553 silicon metal in east China lost 150 yuan/mt on a weekly basis to 15,000-15,100 yuan/mt, those of above-standard #553 silicon metal stabilised at 15,200-15,500 yuan/mt

SHANGHAI, Apr 28 (SMM) - Spot silicon metal prices fell across the board this week. As of April 28, the prices of standard #553 silicon metal in east China lost 150 yuan/mt on a weekly basis to 15,000-15,100 yuan/mt, those of above-standard #553 silicon metal stabilised at 15,200-15,500 yuan/mt, those of #421 silicon metal fell 50 yuan/mt to 16,500-16,700 yuan/mt, and those of #421 silicon metal for use in silicone declined 300 yuan/mt to 16,800-17,000 yuan/mt. Market transactions gradually dwindled after pre-holiday stocking came to an end. Aluminium alloy, silicone and polysilicon enterprises were unsatisfied with the current silicon metal prices. Large silicon metal plants in Xinjiang grabbed market share by leveraging their competitive quotations, while small and medium-sized ones suffered.

Polysilicon enterprises maintained high operating rates. According to SMM data, the domestic polysilicon output was 315,000 in the first quarter, and is expected to increase to 350,000 mt in the second quarter with the ramp-up of new production capacity, which will sustain strong demand for silicon metal. Silicon metal milling enterprises restocked silicon metal as needed, and their raw material inventories were mostly lower than last year. The average operating rate of silicone enterprises dropped 2 percentage points from early April to about 68% due to technical transformation and shutdowns of some producers. DMC prices were stable between 14,800-15,500 yuan/mt, and the demand for #421 silicon metal remained weak. DMC plants tried to bring down #421 silicon metal prices to cope with poor profit margins. The operating rates of aluminium alloy enterprises were basically stable. A small number of secondary aluminium alloy enterprises plan to take a 3-day break for the upcoming Labour Day holiday, but most will be shut down for 3-5 days, which are longer than in previous years. Aluminium alloy enterprises restocked as needed.

Sichuan has officially entered the normal water period. According to SMM survey, fewer than five silicon metal furnaces in the province have been brought back into operation. Operating rates in the province remained low. Most silicon metal producers in Sichuan plan to resume production at the end of May. Silicon metal manufacturers occupied a large market share and were unable to sell at lower prices on the back of their cost advantage, while other enterprises generally asked for high prices. Traders barely made profits as end users tried to push for lower prices. Silicon metal supply was abundant in the spot market. Stalemate between upstream and downstream enterprises resulted in muted trades. Downstream buyers and traders remain bearish towards future silicon metal prices. It is expected silicon metal prices will hold steady or inch lower after the Labour Day holiday.

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