Demand-Side Purchasing Sentiment Remains Moderate, Silicon Metal Prices Stalemate in Tug-of-War [SMM Silicon Industry Weekly Review]

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SMM, February 20: Silicon Metal:

This week, mainstream spot silicon metal prices remained stable, with slight downward adjustments for certain grades. As of February 20, above-standard #553 silicon in east China was priced at 10,700-10,900 yuan/mt, down 50 yuan/mt WoW; #441 silicon was at 11,100-11,300 yuan/mt, unchanged WoW; #421 silicon was at 11,500-11,700 yuan/mt, unchanged WoW; and #421 silicon (for silicone) was at 12,000-12,300 yuan/mt, unchanged WoW. During the week, transaction prices for some low-grade above-standard silicon showed slight declines, while prices for most grades remained stable. In the futures market, the most-traded Si2505 contract fluctuated within 10,530-10,745 yuan/mt during the week, closing at 10,580 yuan/mt on February 20, with overall futures prices fluctuating downward. The #97 silicon market prices remained stable recently, while the secondary silicon market saw weaker transaction prices for some orders due to sluggish demand.

On the demand side, polysilicon enterprises maintained stable operating rates during the week, with a small release of silicon powder orders recently. Silicon powder order prices slightly declined compared to pre-Chinese New Year levels. Polysilicon enterprises are expected to see limited changes in operating rates from February to March, with demand for silicon metal remaining basically stable. Operating rates of silicone enterprises continued to be weak during the week, mainly due to normal maintenance at some silicone monomer plants, leading to weaker consumption of silicon metal. Silicone monomer plants have gradually started inquiring about silicon metal purchases, with significant price differences for #421 silicon among suppliers due to variations in trace elements and supplier differences. The price spread for different sources of #421 silicon can exceed 600 yuan/mt. Aluminum-silicon alloy enterprises continued to recover operating rates, maintaining purchasing as needed for silicon metal.

On the supply side, recent operating rates showed little change. Based on current production schedules, silicon metal supply is expected to increase in March, with the supply-demand balance shifting from a slight deficit in February to near equilibrium. The silicon metal market showed average transaction activity, with back-and-forth negotiations between upstream and downstream leading to price standoffs. Spot silicon metal prices are likely to show slight downward adjustments amid these standoffs.

Polysilicon:

Polysilicon: This week, mainstream transaction prices for N-type recharging polysilicon were 39-45 yuan/kg, while N-type dense polysilicon was priced at 38-42 yuan/kg. The transaction range for polysilicon remained unchanged, with limited transactions in the polysilicon market this week. After a few small transactions last week, the market gradually returned to sluggish conditions, with polysilicon prices temporarily stabilizing due to downstream demand. Polysilicon inventory continued to increase this week, with potential capacity restarts or new production expected in the future.

Silicon Wafers: This week, domestic N-type 18Xmm silicon wafers were priced at 1.16-1.18 yuan/piece, N-type 210R wafers at 1.25-1.35 yuan/piece, and N-type 210mm wafers at 1.55 yuan/piece. The silicon wafer market continued to show slight declines this week, mainly reflected in price drops for 183mm and 210R wafers from second- and third-tier enterprises. Overall market transactions remained weak, with poor market sentiment exerting downward pressure on prices. However, increased module production schedules and rising 210R battery prices may provide some support for silicon wafer prices in March.

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