As Chinese New Year Approaches, Silicon PV Transactions Slow Down Across Multiple Segments with Stable Prices [SMM Silicon-Based PV Morning Meeting Summary]

SMM January 22 News:

Silica

Prices: Silica prices remained stable. As the Chinese New Year approaches, raw material transportation has become challenging. Coupled with the fact that downstream silicon plants have mostly completed their silica raw material restocking earlier, current consumption is primarily focused on existing raw materials, with limited short-term restocking plans. Currently, the mine-mouth prices for high-grade silica in Jiangxi are 440-460 yuan/mt, in Inner Mongolia are 360-390 yuan/mt, and in Hubei are 420-450 yuan/mt.

Production: The overall supply side of silica remains relatively loose. Recently, due to subdued downstream purchasing activity and increasingly tight transportation capacity, order shipments have also decreased.

Inventory: Downstream silicon metal manufacturers are mainly consuming their silica raw material inventory, with restocking plans expected to pick up around March.

Silicon Metal

Prices: Yesterday, the price of above-standard #553 silicon metal in east China was around 10,800-10,900 yuan/mt. As the Chinese New Year approaches, some enterprises have started their holiday breaks, further weakening market transaction activity. Spot silicon prices remained basically stable.

Production:

The operating rate in the silicon industry showed little change before the holiday. Post-holiday, both production increase and reduction expectations exist on the supply side, with attention on the progress of these changes.

Inventory:

Social Inventory: According to SMM statistics, as of January 17, the total social inventory of silicon metal in major regions nationwide was 539,000 mt, up 3,000 mt WoW. Among this, general social warehouses held 151,000 mt, down 1,000 mt WoW, while social delivery warehouses (including unregistered warehouse warrants and spot cargo) held 388,000 mt, up 4,000 mt WoW.

Silicone

Prices:

DMC: Current prices are 12,500-13,500 yuan/mt. This week, market prices remained stable, with the price center shifting downward due to a previous decline in trading volume.

D4: Current prices are 12,600-14,000 yuan/mt. This week, market prices remained stable.

107 Silicone Rubber: Current prices are 12,700-13,500 yuan/mt. This week, market prices remained stable.

Raw Silicone Rubber: Current prices are 13,600-14,200 yuan/mt. This week, market prices remained stable.

Silicone Oil: Current prices are 14,000-15,500 yuan/mt. This week, market prices remained stable.

Production:

Downstream enterprises are gradually entering holiday breaks. Monomer enterprises are operating normally during the Chinese New Year holiday, but their recent load has slightly decreased, leading to a slight decline in comprehensive production for two consecutive weeks.

Inventory:

This week, domestic monomer enterprises saw an increase in inventory due to the impact of halted logistics operations.

Polysilicon

Prices:

Yesterday, the mainstream transaction prices for N-type re-feeding polysilicon were 39-45 yuan/kg. This week, polysilicon prices stabilized. Last week, top-tier enterprises conducted large-scale transactions again, with transaction prices showing no significant fluctuations compared to previous levels.

Production:

Polysilicon production in February is expected to see a slight reduction, with operating rates showing little change due to offsetting increases and decreases. The reduction is mainly attributed to the impact of calendar days.

Inventory:

Inventory showed slight fluctuations after order signing. Currently, market order signing is gradually decreasing, and inventory is exhibiting a clear buildup trend.

Silicon Wafer

Prices:

The market price for N-type 18X silicon wafers is 1.18-1.18 yuan/piece, while the price for N-type 210RN silicon wafers is 1.3-1.35 yuan/piece. This week, N-type silicon wafer prices remained stable, with high-priced resources facing significant sales pressure.

Production:

Previously, silicon wafer enterprises, especially integrated enterprises, ramped up production. In February, silicon wafer operating rates are expected to increase slightly.

Inventory:

Inventory has reversed, with high-priced silicon wafers facing increased sales pressure. Overall, inventory is showing a clear upward trend.

High-Purity Quartz Sand 

Prices:

This week, high-purity quartz sand prices remained stable. Domestic prices for inner-layer sand are 60,000-75,000 yuan/mt, mid-layer sand prices are 35,000-45,000 yuan/mt, and outer-layer sand prices are 19,000-25,000 yuan/mt. There were no transactions in the domestic market this week, as crucible enterprises have started their holiday breaks with no purchasing plans.

Production:

This week, industry operating rates declined, with some small crucible enterprises halting operations for the holiday and planning to resume production after the holiday.

Inventory:

This week, high-purity quartz sand inventory increased. The decline in purchasing activity for imported sand, combined with downstream enterprises halting operations for the holiday, led to a slight decrease in production activity at sand enterprises. However, overall inventory still showed a slight increase.

》View SMM Silicon Product Prices