Silicon metal prices to still lack upward momentum, constrained by weak fundamentals

This week, spot prices of silicon metal remained stable. As of October 17, the mainstream transaction prices of standard #553 silicon metal in east China were 11,400-11,600 yuan/mt, flat WoW. The mainstream transaction prices of above-standard #553 silicon metal were 11,700-11,900 yuan/mt, flat WoW. The mainstream transaction prices of 441# silicon metal were 11,900-12,100 yuan/mt, flat WoW. The mainstream transaction prices of 3303# silicon metal were 12,600-12,800 yuan/mt, flat WoW. New orders in the silicon metal market were limited this week, with light trading. Supply-side quotes remained firm, and SI2411 contract fluctuated around 9,600-9,700 yuan/mt. Based on a premium of 2,200 yuan/mt, the warehouse warrant self-pickup prices in east China were 11,800-11,900 yuan/mt, with few low-priced sources in the market. Orders for silicon metal (Si≥97%) in October were mostly full, with ex-factory self-pickup prices for 1503 specifications at 10,600 yuan/mt. Due to the reduction in PV wafer production, the raw material silicon mud costs for medium-frequency furnace enterprises increased, with ex-factory self-pickup prices for recycled silicon mostly concentrated at 12,200-12,300 yuan/mt or higher (roughly calculated full cost at 12,400-12,500 yuan/mt).
The sentiment in the silicon metal market has entered a new phase of contention. With rising costs during the dry season and the conversion of new standards in December, the supply side has a strong sentiment to stand firm on quotes. From the supply-demand relationship, the supply side is expected to maintain an inventory buildup in October, with weak fundamentals, and prices are expected to remain stable in the near term.

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