Wafer inventory increased slightly, while high-purity quartz sand prices fluctuated rangebound [SMM Silicon-Based PV Morning Meeting Summary]

SMM reported on July 30:

Silicon coal

prices: In some regions of the silicon coal market this week, prices continued to rise. Recently, affected by the increase in raw material coal prices, there was strong support for costs, driving silicon coal prices to rise simultaneously. Among them, the price of non-caking silicon coal in Xinjiang increased by another 50 yuan/mt, while the price of silicon coal in Ningxia and Inner Mongolia increased by 40 yuan/mt. Currently, the average price of non-caking silicon coal in Xinjiang is 810 yuan/mt, the average price of caking silicon coal in Xinjiang is 1,250 yuan/mt, the average price of silicon mixed coal in Gansu is 840 yuan/mt, the average price of pellet coal is 960 yuan/mt, the average price of silicon mixed coal in Ningxia is 925 yuan/mt, and the price of pellet coal is 1,090 yuan/mt.

Supply: Affected by the resumption of production at silicon plants in the rainy season in south-west China, the operating rate in some regions increased slightly. However, the production pace on the supply side is still scheduled based on order intake, with no pressure to stockpile inventory.

Demand: Due to the resumption of production at some silicon plants in the rainy season in south-west China, the overall demand increased slightly, but it still mainly focused on rigid demand.

Silicon metal

prices: Yesterday, SMM reported that the price of oxygen-blown #553 silicon in east China ranged from 9,700 to 9,800 yuan/mt, and the price of #441 silicon ranged from 9,900 to 10,100 yuan/mt. Affected by significant fluctuations in the futures market prices, the difference between the high and low quotes of silicon suppliers within the day exceeded 400 yuan/mt. With strong capital gaming sentiment, market prices fluctuated considerably, and downstream users purchased as needed.

Production:

In August, silicon metal is expected to see an increase in both supply and demand compared to July. Attention should be paid to the progress of new production resumptions.

Inventory:

Social inventory: According to SMM statistics, the total social inventory of silicon metal in major regions on July 24 was 535,000 mt, a decrease of 12,000 mt WoW. Among them, the social general warehouse inventory was 120,000 mt, unchanged WoW, and the social delivery warehouse inventory was 415,000 mt (including unregistered warrants and spot cargo), a decrease of 12,000 mt WoW. (Excluding Inner Mongolia, Gansu, etc.)

Silicone

prices

DMC: Currently quoted at 12,100-12,800 yuan/mt. Since last weekend, silicone enterprises in east China that were not involved in the incident have begun to resume operations. At the beginning of this week, some monomer plants sealed their orders and temporarily did not provide quotes, showing strong reluctance to budge on prices.

D4: Currently quoted at 12,600-13,500 yuan/mt, with D4 prices holding steady this week.

107 silicone rubber: Currently quoted at 12,500-13,000 yuan/mt, with 107 silicone rubber prices holding steady this week.

Raw silicone rubber: Currently quoted at 12,800-13,300 yuan/mt, with raw silicone rubber prices holding steady this week.

Silicone oil: Currently quoted at 14,000-14,800 yuan/mt, with silicone oil prices holding steady this week.

Production:

Recently, the monomer operating rate has increased slightly, and some monomer capacities in east China have resumed operations.

Inventory:

This week, the inventory of monomer enterprises declined as downstream enterprises entered the market for procurement.

Polysilicon

Prices

Yesterday, the quoted prices for N-type recharging polysilicon were 44-49 yuan/kg, and for granular polysilicon, they were 43-46 yuan/kg. Market quotes remained temporarily stable. On July 29, polysilicon enterprises gathered again to discuss capacity acquisition matters, and the general direction of supply-side reform was determined, but the final list had not yet been finalized and might require further discussion.

Production

There have been no significant changes to the production schedule for July, and the total polysilicon production is expected to approach the 110,000 mt mark. Polysilicon production in August is anticipated to increase significantly.

Inventory

This week, polysilicon inventory rebounded somewhat. The pace of picking up goods for previous orders slowed down, and the signing of new orders, except for granular polysilicon, was relatively limited. The wait-and-see sentiment in the market strengthened.

Wafer

Prices

The market prices for N-type 18X wafers are 1.1-1.2 yuan/piece, and for N-type 210RN wafers, they are 1.25-1.35 yuan/piece. Wafer prices increased again, and multiple manufacturers followed suit. Currently, wafer factories are mainly raising prices based on cost increases.

Production

In July, the operation of wafer factories was relatively weak. With the increase in wafer prices, some enterprises have preliminary plans to restart furnaces, and the specific implementation needs to be further observed.

Inventory

Recently, overall market transactions have declined compared to the previous period, mainly due to the price increase again, and inventory has rebounded slightly.

High-purity quartz sand

Prices

Currently, the domestic prices for inner-layer sand are 59,000-64,000 yuan/mt, for middle-layer sand are 27,000-33,000 yuan/mt, and for outer-layer sand are 17,000-22,000 yuan/mt. This week, domestic high-purity quartz sand prices remained stable. Quartz sand enterprises mainly engaged in bargaining and price negotiations this week, and prices temporarily stopped declining. Recently, the procurement demand from the wafer end has slightly improved, and it is expected that sand prices will fluctuate rangebound in the future.

Production

This week, the operation of quartz sand factories remained temporarily stable, with enterprises producing based on demand. A new batch of imported sand has arrived at the port, and domestic supply is relatively sufficient.

Inventory

The inventory of sand enterprises still maintained a slightly upward trend.