June wafer production schedule decline expected to reduce production, weak demand for high-purity quartz sand leads to price drop [SMM Silicon-based PV Morning Meeting Summary]

SMM June 4 News:

Silicon Coal

Prices: This week, silicon coal prices have remained weak and stable. Currently, the average price of silicon blended coal in Gansu is 870 yuan/mt, with granular coal at 1,000 yuan/mt. In Ningxia, the average price of silicon blended coal is 900 yuan/mt, and granular coal is priced at 1,140 yuan/mt, with granular coal (ash content 5-6%) averaging 1,310 yuan/mt. However, due to the continuous decline in coking coal futures and spot prices recently, in the short term, silicon coal prices are expected to decline.

Supply: Supply volumes on the supply side are relatively sufficient. Affected by the low operating rates of silicon plants, there is significant competitive pressure across regions. To reduce inventory, producers have mostly adopted a supply-on-demand strategy to mitigate the risk of stockpiling.

Demand: Procurement remains primarily driven by rigid demand for restocking, showing a persistent weak trend, with strong sentiment for driving down prices.

Silicon Metal

Prices: Spot and futures prices of silicon metal continue to decline. Yesterday, SMM east China oxygen-blown #553 silicon was priced at 8,100-8,300 yuan/mt. The futures Si2507 contract fell below 7,100 yuan/mt, closing at 7,075 yuan/mt, with both futures and spot prices maintaining a downward trend. Market transactions are mainly based on spot-futures pricing, with the transaction center moving downward.

Production:

According to SMM data, in May 2025, silicon metal production reached 307,700 mt, up 2.3% MoM and down 24.6% YoY. From January to May 2025, the cumulative production of silicon metal decreased by 15.3% YoY. In June, silicon metal production is expected to continue increasing MoM.

Inventory:

Social Inventory: SMM statistics show that as of May 29, the total social inventory of silicon metal in major regions was 589,000 mt, up 7,000 mt WoW. Among this, social general warehouses held 134,000 mt, up 4,000 mt WoW, and social delivery warehouses held 455,000 mt (including unregistered warrants and spot portions), up 3,000 mt WoW. (Excluding regions such as Inner Mongolia and Gansu)

Silicone

Prices

DMC: Currently quoted at 11,300-11,600 yuan/mt. This week, the low transaction price of DMC in some domestic regions dropped slightly by 100 yuan/mt. With the recent significant decline in silicon metal prices, cost support has weakened, and transaction volumes have remained basically stable, with some enterprises slightly reducing prices to take orders.

D4: Currently quoted at 11,600-12,300 yuan/mt. This week, the transaction price of D4 remained stable.

107 Silicone Rubber: Currently quoted at 11,800-12,400 yuan/mt. This week, the high price of 107 silicone rubber fell again. Entering the traditional off-season for silicone adhesive demand, trading volumes are limited.

Raw Silicone Rubber: Currently quoted at 12,500-13,000 yuan/mt. This week, the procurement volume of high-temperature adhesive enterprises has slightly decreased, with procurement mainly driven by rigid demand.

Silicone Oil: Current quotes are 13,600-14,200 yuan/mt. This week, silicone oil prices fell due to limited demand in the end-use sector.

Production:

Recently, the operating rate of monomer enterprises has increased slightly. Although some monomer enterprises underwent maintenance in June, the overall operating rate rose slightly above 60%.

Inventory:

This week, the inventory levels of monomer enterprises increased slightly, with demand weakening in most downstream segments.

Polysilicon

Price

Yesterday, the mainstream transaction prices for N-type recharging polysilicon were 35-38 yuan/kg, and the N-type polysilicon price index was 35.01 yuan/kg. The market transactions gradually approached the end, with limited polysilicon transactions.

Production

In May, the actual production of polysilicon changed relatively little, with an estimated domestic output of around 96,000 mt. In June, there is an expectation for a slight increase in polysilicon production, but the overall increase will be limited.

Inventory

There remains significant pressure on polysilicon inventory, with large disparities among enterprises. Overall, the inventory situation has not improved significantly.

Wafer

Price

The market price for N-type 18X wafers is 0.93-0.95 yuan/piece, and for N-type 210RN wafers, it is 1.05-1.1 yuan/piece. Wafer prices remained largely stable, with limited market transactions.

Production

In May, the actual production schedule saw slight changes, with a domestic output of approximately 58.06 GW. In June, wafer production decreased as several specialized companies cut production.

Inventory

Recent market transactions remained limited, with cautious purchasing sentiment. Inventory levels were largely stable, with minor fluctuations.

High-Purity Quartz Sand

Price

Currently, the price for inner layer sand is 60,000-70,000 yuan/mt, for middle layer sand is 33,000-43,000 yuan/mt, and for outer layer sand is 17,000-24,000 yuan/mt. This week, domestic quartz sand prices remained temporarily stable, but spot order prices for imported sand decreased slightly. Crucible enterprises maintained a cold purchasing sentiment, and the silicon wafer end's production was below expectations. Overall, the market demand weakened, leading to a decline in prices.

Production

This week, the operation of quartz sand enterprises remained stable, with a slight upward trend in overall production in May.

Inventory

This week, the inventory of sand enterprises remained temporarily stable, with crucible enterprises making necessary purchases recently.

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