Polysilicon production in June will decline significantly, decline in polysilicon prices slowed down

Published: May 27, 2024 17:41 (GMT+8)
Last Friday, SMM price of above-standard #553 silicon metal in east China was at 13,100-13,300 yuan/mt. Last week, the price trends of industrial silicon spot and futures diverged. Industrial silicon futures prices rose strongly due to macroeconomic and financial factors, while spot prices were affected by weak fundamentals, with some grades even seeing slight price reductions. Spot market suppliers raised prices.

Industrial Silicon

Prices

Last Friday, SMM price of above-standard #553 silicon metal in east China was at 13,100-13,300 yuan/mt. Last week, the price trends of industrial silicon spot and futures diverged. Industrial silicon futures prices rose strongly due to macroeconomic and financial factors, while spot prices were affected by weak fundamentals, with some grades even seeing slight price reductions. Spot market suppliers raised prices.

Production

The rainy season in the southwest is approaching, and silicon enterprises in Sichuan are gradually resuming production, with operating rates gradually increasing. In Yunnan, operating rates are stable, and many local silicon enterprises plan to resume production in June-July. Overall industrial silicon supply is gradually increasing.

Inventory

Social inventory: As of May 24, SMM statistics show that the national social inventory of industrial silicon was 386,000 tons, an increase of 7,000 tons from a week ago. Among them, social ordinary warehouses held 106,000 tons, flat from a week ago, and social delivery warehouses held 280,000 tons (including unregistered warrants), an increase of 7,000 tons from a week ago.

Polysilicon

Prices

Yesterday, the mainstream price of N-type polysilicon was 40-44 yuan/kg, and the mainstream price of dense polysilicon was 34-38 yuan/kg. Due to maintenance and cost factor, the price decline is slowing down.

Production

The number of maintenance manufacturers continues to increase over time, with significant production cuts already seen in leading enterprises. Polysilicon production in June is expected to decline significantly.

Inventory

Downstream procurement enthusiasm is limited, with few orders signed, and inventory remains high.

Modules

Prices

Last week, the mainstream transaction price for double-sided 182mm monocrystalline PERC modules was 0.74-0.82 yuan/W, for double-sided 210mm monocrystalline PERC modules was 0.76-0.84 yuan/W, for N-type 182mm modules was 0.8-0.87 yuan/W, and for N-type 210mm modules was 0.84-0.88 yuan/W. Due to falling raw material prices and demand, module prices dropped significantly.

Production

Module production in May is expected to decline, mainly supported by domestic centralized procurement demand. Production in June is expected to decrease again MoM.

Inventory

Demand growth is slow, and current module inventory levels are high but still manageable.

High-purity Quartz Sand

Prices

Domestic high-purity quartz sand prices remain stable. Current domestic inner layer sand prices are 170,000-210,000 yuan/mt, middle layer sand prices are 100,000-130,000 yuan/mt, and outer layer sand prices are 24,000-50,000 yuan/mt.

Production

Recent domestic and overseas supply remains stable, with no new capacity commenced. Existing production lines are operating normally.

Inventory

Current high-purity quartz sand inventory is flat from a week ago. Market transaction activity has slightly decreased, with downstream enterprises mainly making just-in-time purchases.

PV Glass

Prices

3.2mm single-layer coated: 3.2mm single-layer coated PV glass is priced at 26.5-27.5 yuan/sqm, with prices stable and expected to decline later.

3.2mm double-layer coated: 3.2mm double-layer coated PV glass is priced at 27.5-28.5 yuan/sqm, with prices stable and expected to decline later.

2.0mm single-layer coated: 2.0mm single-layer coated PV glass is priced at 17.5-18.5 yuan/sqm, with prices stable and expected to decline later.

2.0mm double-layer coated: 2.0mm double-layer coated PV glass is priced at 18.5-19.5 yuan/sqm, with prices stable and expected to decline later.

Production

In May, domestic PV glass production lines continued to increase. Currently, Hebei has commenced a 1,000-ton/day kiln, Yunnan has commenced a 1,200-ton/day kiln, and Guangxi has commenced a 1,200-ton/day kiln.

Inventory

Inventory continued to increase at the end of May. Downstream procurement remains weak, and demand in June is expected to remain poor.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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