Prices of Photovoltaic-Grade Trichlorosilane Decline as Market Demand Continues to Weaken [SMM Analysis]

Last week, the prices of photovoltaic-grade trichlorosilane declined, and market demand continued to weaken, with very few orders in the market. Quotations in East China were 4,200-4,500 yuan/mt, in Central China 4,000-4,400 yuan/mt, and in other regions, the quotations were little different, with ex-factory prices ranging from 4,000 to 4,500 yuan/mt, marking a historical low.

Price Trend of Photovoltaic-Grade Trichlorosilane:

Last week, the photovoltaic-grade trichlorosilane market remained bleak, with few transactions in late May, and only limited transactions in Xinjiang, with ex-factory transaction prices around 4,200 yuan/mt. SMM learned that the main reason for the price decline was the arrival of the off-season in June and July and weaker demand in the photovoltaic industry chain, resulting in major local producers of downstream polysilicon undergoing maintenance to varying degrees, thereby reducing the demand for trichlorosilane. This led to very few orders in the market in the past two weeks, with trades being unprecedentedly bleak. Due to the above reasons, trichlorosilane producers had to lower prices to attract downstream purchases.

On the supply side, most trichlorosilane producers have also reduced production recently. Currently, two enterprises in Central and North China have stopped production, and one enterprise in East China has also recently reported a possible output cut plan. Additionally, three new capacities originally planned to start in May and June in East and North-west China are still on hold, and the overcapacity issue in the trichlorosilane market still exists. Downstream polysilicon enterprises' willingness to purchase remained low, and photovoltaic-grade trichlorosilane is expected to see inventory piling up.

In the face of severe supply and demand imbalance pressure, although there have been reports of several enterprises stopping production, downstream demand remains very low. SMM believes that the prices of photovoltaic-grade trichlorosilane will continue to decline in the near future.