Spot silicon metal prices continued to rise during the week [SMM Silicon Industry Weekly Review]

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SMM reported on July 17:Silicon Metal:

This week, the spot price of silicon metal continued to rise! In the spot market, as of July 17, SMM's oxygen-blown #553 silicon in east China was priced at 9,100-9,300 yuan/mt, up 450 yuan/mt WoW, while #441 silicon was priced at 9,400-9,500 yuan/mt, up 400 yuan/mt WoW. In the futures market, the most-traded SI2509 contract continued to increase during the week, with a high of 8,880 yuan/mt and a low of 8,350 yuan/mt. It closed at 8,745 yuan/mt on July 17, up 275 yuan/mt or 3% WoW. Since mid-to-late June, the spot price of silicon metal has risen by over 1,000 yuan/mt, and silicon plants' willingness to sell has increased. Downstream users' acceptance of prices has weakened compared to last week, with market inquiries and new order transactions slowing down in recent days.

In terms of demand, the operating rate of polycrystalline silicon enterprises remained largely stable during the week, with weekly production of around 23,000 mt. Some polycrystalline silicon powder orders began to be tendered or concluded during the week, with the concluded powder order prices being relatively low. The operating rate of silicone enterprises remained stable during the week, with weekly production of DMC at around 45,000 mt. The price increase of silicon metal at the raw material end was transmitted downstream, and the DMC price also rose to 10,600-11,000 yuan/mt. The operating rate of aluminum-silicon alloy enterprises was basically stable, with purchasing silicon metal as needed.

In terms of inventory, SMM's weekly social inventory decreased slightly by 4,000 mt compared to last week. The warrant data of the Guangzhou Futures Exchange decreased by 187 lots or 935 mt compared to last week. In terms of supply, a small amount of capacity at large plants in Xinjiang in the north was temporarily suspended during the week and is expected to resume next week. There is no news of production resumptions for other suspended capacities yet. In Yunnan, during the rainy season, the production capacity that resumed production continued to release output, and the operating rate increased. Recently, there have been more macro and policy-related positives in the market. It is expected that there will be a slight destocking in the supply-demand balance in July, and the fundamentals are performing moderately. In the short term, the spot price of silicon metal will remain firm.

Polysilicon:This week, the N-type polysilicon price index was 45.23 yuan/kg, with N-type recharging polysilicon quoted at 44.5-49 yuan/kg and granular polysilicon quoted at 41-45 yuan/kg. Polysilicon quotes increased slightly. At the beginning of this week, market quotes gradually stabilized, but subsequently, with a significant jump in wafer quotes and the cost calculation basis reaching a comprehensive price of 43.87 yuan/kg, it supported some rod-shaped polysilicon enterprises to continue increasing their quotes. However, it should be noted that there are still no direct new orders concluded at the current high prices, and some orders are shipped with a combination of new and old goods. Subsequent market still focuses on mainstream transactions.

Wafer: This week, the price of N-type 183 wafers was 1.05-1.45 yuan/piece, 210R wafers were quoted at 1.2-1.65 yuan/piece, and 210mm wafers were quoted at 1.4-1.93 yuan/piece. Wafer prices saw a significant increase this week. A self-discipline meeting for the wafer industry was held, and wafer enterprises began to quote based on full cost. Some top-tier enterprises significantly raised their quotes, while others remained cautious and observed the market, leading to a fragmented market quotation. Currently, there have been no actual transactions at the higher prices, and the market is observing downstream acceptance and price adjustment situations.

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