The center of silicon metal transactions weakened WoW, while polysilicon quotes remained stable [SMM Silicon-based PV Morning Meeting Summary]

SMM reported on August 6:

Silicon coal

prices: This week, silicon coal prices in Shaanxi rose again by 30 yuan/mt, reaching an average price of 850 yuan/mt. Prices in other regions remained stable this week. The main reason for the price increase is the tight supply of raw coal at mine mouths in Shaanxi. Currently, only one coal mine in Shaanxi is operating normally, but due to the reduction in coal reserves at the mine itself, the supply of raw coal has decreased. Moreover, there are no other mines to supplement the supply, leading to another price increase.

Supply: Apart from Shaanxi, most coal washing plants in Gansu, Ningxia, Xinjiang, and other regions still maintain a production schedule based on orders, achieving a balance between production and sales.

Demand: Some silicon plants in south-west China have gradually resumed production, leading to a slight increase in overall demand. Other silicon plants operating normally still focus on purchasing as needed.

Silicon metal

prices: Yesterday, SMM reported that oxygen-blown #553 silicon metal in east China was priced at 9,100-9,400 yuan/mt, and #441 silicon metal was priced at 9,500-9,600 yuan/mt. Prices in the futures market fluctuated strongly, with traders and some silicon enterprises following suit. The transaction center of spot silicon metal was weak, and downstream market transactions were based on purchasing as needed.

Production:

In July, the silicon market showed destocking amid supply-demand balance. In August, both supply and demand increased, with polysilicon production increases driving up silicon demand. On the supply side, the operating rate in Xinjiang increased, coupled with a small increase in south-west China, leading to an increase in silicon metal supply.

Inventory:

Social inventory: SMM statistics showed that the total social inventory of silicon metal in major regions was 540,000 mt as of July 31, up 5,000 mt WoW. Among them, social general warehouses held 119,000 mt, down 1,000 mt WoW, while social delivery warehouses held 421,000 mt (including unregistered warrants and spot portions), up 6,000 mt WoW. (Excluding Inner Mongolia, Gansu, etc.)

Silicone

prices

DMC: Currently quoted at 12,100-12,700 yuan/mt. This week, various dimethyldichlorosilane plants resumed normal quoting, with overall prices remaining stable compared to before the market closure.

D4: Currently quoted at 12,400-13,500 yuan/mt, with a price decrease of 100 yuan/mt this week.

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

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

Silicone oil: Currently quoted at 13,800-14,500 yuan/mt, with a price decrease of 250 yuan/mt this week.

Production:

Recently, monomer operating rates have slightly increased, with some monomer capacities in east China resuming operation.

Inventory:

This week, the inventory of dimethyldichlorosilane enterprises remained at a normal level, and downstream enterprises entered the market to make rational purchases.

Polysilicon

Prices

Yesterday, the quoted prices for N-type recharging polysilicon were 45-49 yuan/kg, and for granular polysilicon were 43-46 yuan/kg. Market quotes remained stable temporarily. Recently, industry conferences have been held frequently, mainly focusing on the issue of polysilicon supply-side reform. The capacity exit plan is still being formulated, and attention should be paid to the introduction of specific plans and the downward transmission of prices.

Production

The production schedule for polysilicon in August is expected to reach around 130,000 mt, with a certain risk of surplus in the month. The main increase comes from Yunnan, Sichuan, and other regions.

Inventory

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

Wafer

Prices

The market price for N-type 18X wafers is 1.2-1.2 yuan/piece, and for N-type 210RN wafers is 1.55-1.55 yuan/piece. The wafer segment has completed price increases, and most manufacturers have raised wafer prices due to cost influences. Currently, the price increases have achieved stable shipments.

Production

In August, the production schedule for mainstream domestic wafers has been slightly increased. Currently, wafer enterprises have different production plan directions. Leading specialized wafer enterprises have taken actions to increase production, mainly observing raw material prices and downstream price transmission.

Inventory

Recently, wafers have undergone destocking. After the price increase, the overall order demand is normal, and stable shipments are maintained.

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, the domestic prices for high-purity quartz sand remained stable. The spot order prices for imported sand traders dropped slightly, and the inventory held by traders decreased somewhat.

Production

This week, the operation of quartz sand production has increased slightly. The overall production in August is still expected to rise slightly, with enterprises appropriately producing in advance for the PV terminal installation rush.

Inventory

The inventory of sand enterprises has increased slightly. Under the influence of the subsequent increase in wafer production schedules, the inventory of sand enterprises is expected to decline.