High-Purity Quartz Sand Prices Pull Back, Sentiment Weak in Wafer Market [SMM Silicon-Based PV Morning Meeting Summary]

SMM April 30 Report:

Silica

Prices: Silica prices in some regions declined this week. Currently, the ex-factory prices of high-grade silica ore at mine mouths in Hubei range from 350-390 yuan/mt, with an average decrease of 15 yuan/mt during the week. In Inner Mongolia, the ex-factory prices of high-grade silica ore at mine mouths range from 320-370 yuan/mt. In Guangxi, the ex-factory prices of high-grade silica ore at mine mouths range from 360-380 yuan/mt. In Guizhou, the ex-factory prices of high-grade silica ore at mine mouths range from 290-330 yuan/mt.

Production: Remained loose.

Demand: Demand continued to be constrained by the downturn in the downstream silicon metal industry. In south-west China, despite the approaching rainy season, most silicon plants showed weak willingness to resume production. Additionally, in north-west and north China, the operating rates of silicon plants remained at low levels. Therefore, overall procurement of silica ore was mainly for "small-order, just-in-time" restocking, with strong intentions to drive down prices.

Silicon Metal

Prices: Silicon metal prices continued to decline yesterday. SMM's oxygen-blown #553 silicon in east China was priced at 9,400-9,500 yuan/mt. The main futures contract (Si2506) hit a new low, closing at 8,540 yuan/mt at the end of the session, down 235 yuan/mt or 2.68% from the previous day. The price center of the silicon metal market continued to move downward.

Production:

With silicon metal prices continuing to decline, silicon enterprises faced significant production pressure. Coupled with weak demand and low transaction prices in the downstream, the operating rates of silicon enterprises remained low.

Inventory:

Social Inventory: SMM statistics showed that the total social inventory of silicon metal in major regions was 602,000 mt as of April 25, a decrease of 10,000 mt WoW. Among them, social general warehouses held 137,000 mt, unchanged WoW, while social delivery warehouses held 465,000 mt (including unregistered warrants and spot cargo), a decrease of 10,000 mt WoW. (Excluding regions such as Inner Mongolia and Gansu)

Prices

DMC: Current quotations range from 11,000-11,900 yuan/mt. The price center of the market this week declined slightly compared to last week. However, influenced by the increase in procurement volume driven by downstream enterprises entering the market to buy the dip, the price center has recently rebounded, and it is expected that low prices in the subsequent market will increase slightly.

D4: Current quotations range from 12,200-12,700 yuan/mt. Prices fell this week, with some D4 producers offering discounts to sell, leading to a slight decline in prices.

107 Silicone Rubber: Current quotations range from 11,800-12,800 yuan/mt. The mainstream quotation center for domestic 107 silicone rubber remained stable this week. Some enterprises with relatively high inventory levels showed increased willingness to offer discounts to sell. However, with the recent rise in DMC prices, quotations for 107 silicone rubber have rebounded somewhat.

Raw Silicone Rubber: Current quotations range from 12,800-13,500 yuan/mt. The market price of raw silicone rubber fell significantly this week. Influenced by inventory pressure, price support was limited.

Silicone Oil: Current quotations range from 14,000-14,800 yuan/mt. Transaction prices in the domestic market remained stable this week. After experiencing significant price reductions earlier, the willingness to cut prices for silicone oil weakened this week, with most enterprises maintaining stable quotations.

Production:

The operating load of domestic monomer enterprises is expected to continue to decline. Annual maintenance plans for monomer enterprises in north-west China will commence soon. However, due to the completion of maintenance at some monomer enterprises, with operating capacity increasing in some areas and decreasing in others, the industry's operating rate will still maintain a slight decline.

Inventory:

The inventory of domestic monomer enterprises declined slightly this week, with trading volume showing some improvement.

Polysilicon

Prices

Yesterday, the mainstream transaction price of N-type recharging polysilicon was 37-44 yuan/kg, with an N-type polysilicon price index of 37.3 yuan/kg. This week, the price center of polysilicon continued to shift slightly downward, with some transactions occurring at generally weak prices. A few top-tier enterprises sold to term traders, with prices also falling compared to the earlier quotations in early April.

Production

In April, some new capacity may only be in trial production, with output expected. In May, some enterprises will implement production cuts, leading to a potential MoM decline in production.

Inventory

At month-end, some orders were picked up, but transactions have been very limited recently, resulting in a slight increase in polysilicon inventory.

Wafer

Prices

The market price of N-type 18X wafers is 1-1.05 yuan/piece, and the price of N-type 210RN wafers is 1.18-1.1 yuan/piece. Wafer market prices continued to pull back, with "daily price changes" and an overall weak sentiment.

Production

Currently, the planned production schedule for April is over 58GW. In May, enterprises' production adjustments will vary, but the overall trend is expected to decline MoM.

Inventory

Recently, the overall procurement sentiment in the market has been weak, leading to a slight inventory buildup of wafers.

High-Purity Quartz Sand

Prices

This week, high prices of high-purity quartz sand pulled back slightly. Domestic inner-layer sand prices range from 60,000-73,000 yuan/mt, middle-layer sand prices range from 36,000-45,000 yuan/mt, and outer-layer sand prices range from 18,000-25,000 yuan/mt. Due to the rapid decline in demand and prices for wafers recently, there has been an unprecedented strong resistance to high prices on the raw material side. This week, high quotations for some products decreased slightly, and market quotations for imported sand also declined slightly, with the impact of the trade war gradually diminishing.

Production

This week, overseas production remained stable, with a slight increase in the output of some domestic middle- and outer-layer quartz sand materials.

Inventory

Currently, the inventory of imported sand remains sufficient for over two months. The procurement volume of crucible enterprises is limited, and the inventory levels of sand enterprises have remained basically unchanged.

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