Spot silicon metal prices consolidate, while the price center of polysilicon weakens [SMM Silicon Industry Weekly Review]

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SMM News on June 12:Silicon Metal:

This week, spot prices of silicon metal remained rangebound. In the spot market, SMM's oxygen-blown #553 silicon metal in east China was priced at 8,000-8,300 yuan/mt, unchanged WoW. #441 silicon metal was priced at 8,400-8,600 yuan/mt, unchanged WoW. #421 silicon metal was priced at 8,400-9,000 yuan/mt, unchanged WoW. In the futures market, the main contract Si2507 for silicon metal fluctuated considerably around 7,300-7,550 yuan/mt. Futures prices rose by approximately 200-300 yuan/mt WoW. After the futures market climbed, spot-futures price spread quotes remained stable, with absolute prices rising WoW. Downstream buyers of silicon metal were more inclined to drive down prices, showing poor acceptance of high prices. The availability of low-priced cargo in the market decreased, and the center of trading for some specifications shifted upward WoW.

The operating rate of polysilicon on the demand side was basically stable. The subsequent operating capacity of polysilicon may increase slightly, while polysilicon prices are under downward pressure. Recently, most powder orders were concluded in Xinjiang. The operating rate of silicone gradually increased, mainly due to the resumption of production at some previously overhauled facilities. Silicone monomer enterprises focused on digesting inventories. The operating rate of aluminum-silicon alloy enterprises was basically stable. During the week, the futures price of silicon metal rose, stimulating the release of some rigid demand orders. However, the sentiment to drive down prices persisted, and transactions were conducted on a need-basis.

After the futures market adjusted upward, some silicon plants in Xinjiang concluded spot transactions at fixed prices during the week, with ex-factory prices around 7,400-7,500 yuan/mt. In terms of equity inventory, in-plant inventory declined. Regarding the recent electricity price subsidy policy implemented by a certain corps in Xinjiang, silicon enterprises responded cautiously to the subsidy form of "subsidy after production". Moreover, the limited capacity involved had a relatively minor impact on changes in the average cost of the silicon metal industry. Overall, on the supply side, silicon metal production continued to increase, exerting downward pressure on prices. On the cost side, prices were supported. Recently, silicon metal prices have mainly remained rangebound.

Polysilicon:This week, the N-type polysilicon price index was 35.11 yuan/kg. N-type recharging polysilicon was priced at 35-37 yuan/kg, and N-type mixed polysilicon was priced at 31-35 yuan/kg. Polysilicon prices continued to decline. Polysilicon manufacturers may have certain plans to increase production subsequently. Wafer prices weakened, reducing the enthusiasm of wafer enterprises to purchase polysilicon. Crystal pulling plants had a more pronounced sentiment to drive down prices, and bearish sentiment persisted in the market. Some market participants believed that prices may hit bottom in July-August.

Wafer: This week, N-type 183 wafers were priced at 0.90-0.92 yuan/piece, 210R wafers at 1.05-1.1 yuan/piece, and 210 wafers at 1.25-1.3 yuan/piece. Wafer prices continue to weaken, with the obstruction of 183 shipments being more pronounced. Second- and third-tier manufacturers have generally quoted prices at 0.9 yuan/piece. Prices from major manufacturers may have a slight premium, but overall, they are also weakening. The demand for 210R is robust, and prices are slightly firm. However, influenced by the weak end-use demand in the market, the sentiment remains bearish.

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