Weak demand further increased inventory pressure, causing high-purity quartz sand prices to fall [SMM analysis]

As of Apr 30, the SMM domestic market high-purity quartz sand (for the inner layer of quartz crucible) is quoted at 170,000-230,000 yuan/ton, with an average price of 200,000 yuan/ton, and the price has fallen; high-purity quartz sand (for the middle layer of quartz crucible) is quoted at 100,000-130,000 yuan/ton, with an average price of 115,000 yuan/ton, and the price has fallen; high-purity quartz sand (for the outer layer of quartz crucible) is quoted at 24,000-80,000 yuan/ton, with an average price of 52,000 yuan/ton, and the price is temporarily stable.

Recently, the price of domestic high-purity quartz sand, except for the outer layer sand, has fallen again. Although there is still no transaction in the overall market of inner and middle layer high-purity quartz sand, the quotations of enterprises have begun to decline, and the quotations are almost "halved" compared with the previous price. Since April, the domestic high-purity quartz sand market has begun to loosen, and long-term negotiations between crucible companies and sand companies have begun. As the recent silicon wafer production schedule has begun to weaken, the demand for crucibles themselves has begun to decrease, and prices have gradually fallen. The price of a 36-inch crucible has dropped from 40,000 yuan/piece to 21,000 yuan/piece. The price has fallen sharply and quickly, so there is a strong sentiment to suppress the price of quartz sand, the willingness to purchase is low, and the inventory of quartz sand gradually increased.

Therefore, in late April, quartz sand's traders held their offers less firm, and it began to quote prices to crucible companies. The prices were affected by overseas long-term orders and sluggish demand, coupled with the expected increase in supply. After the price drop, it is expected that some crucible companies' purchasing willingness will recover and transaction expectations will be enhanced.

As for the subsequent price forecast, SMM believes that the price of quartz sand will continue to fall. The current price is still based on quotations. Most crucible companies have not yet entered the market to purchase and are mainly on the sidelines. From the perspective of the crucible's own profits, it is expected that negotiations will be conducted again on the basis of the current quartz sand quotation. The price is expected to fall again, but the decline will still be relatively limited.