In August, leading wafer companies increased their production schedules, while the price of high-purity quartz sand remained stable amid market negotiations [SMM Silicon-Based PV Morning Meeting Summary]

SMM reported on August 13:

Silicon coal

prices: This round of silicon coal market prices increased. Starting from July 22, the total increase in Ningxia was 125 yuan/mt, the increase for non-bonded silicon coal in Xinjiang was 100 yuan/mt, the increase in Shaanxi was 140 yuan/mt, and the increase in Gansu was 40 yuan/mt. In the short term, silicon coal market prices are expected to fluctuate. Currently, the average price of non-bonded silicon coal in Xinjiang is 810 yuan/mt, the average price of silicon mixed coal in Gansu is 880 yuan/mt, the average price of granular coal is 990 yuan/mt, the average price of silicon coal in Shaanxi is 850 yuan/mt, and the price of granular coal in Ningxia is 1,160 yuan/mt.

Supply: The supply in Shaanxi remains tight, while other regions maintain normal levels. However, due to the price increase, the situation of taking new orders in some regions is not ideal.

Demand: Currently, downstream players mostly hold a bearish view of market changes and are adopting a wait-and-see approach. Purchases are still limited to just-in-time restocking.

Silicon metal

prices: Yesterday, SMM reported that the price of oxygen-blown #553 silicon metal in east China ranged from 9,300 to 9,500 yuan/mt, and the price of #441 silicon metal ranged from 9,600 to 9,800 yuan/mt. The futures market was weak and trading sideways. Yesterday, the main contract 2511 opened at 9,050 yuan/mt and closed at 8,840 yuan/mt, down 100 yuan/mt from the previous day. Recently, silicon metal prices have fluctuated within a narrow range. Downstream buyers are adopting a wait-and-see approach and are driving down prices, putting pressure on spot silicon metal prices.

Production:

On the supply side, major plants in the north continue to increase production, while the operating rates in other regions remain relatively stable. The weekly production of silicon metal increased MoM.

Inventory:

Social inventory: According to SMM statistics, the total social inventory of silicon metal in major regions was 547,000 mt on August 7, up 7,000 mt WoW. Among them, the social inventory in general warehouses was 118,000 mt, down 1,000 mt WoW, and the social inventory in delivery warehouses was 429,000 mt (including unregistered warrants and spot cargo), up 8,000 mt WoW. (Excluding Inner Mongolia, Gansu, etc.)

Silicone

prices

DMC: Currently quoted at 11,500-12,500 yuan/mt. This week, dimethyldichlorosilane plants in Shandong held back from selling, while other dimethyldichlorosilane plants maintained stable quotes.

D4: Currently quoted at 11,500-13,500 yuan/mt. This week, the price of D4 decreased by 150 yuan/mt.

107 silicone rubber: Currently quoted at 12,500-13,000 yuan/mt. This week, the price of 107 silicone rubber remained stable.

Raw silicone rubber: Currently quoted at 12,800-13,300 yuan/mt. This week, the price of raw silicone rubber remained stable.

Silicone oil: Currently quoted at 13,700-14,500 yuan/mt. This week, the price of silicone oil remained stable.

Production:

Currently, the overall operating rate of the dimethyldichlorosilane plant industry is about 75%, with a slight increase in overall supply.

Inventory:

This week, some dimethyldichlorosilane enterprises maintained inventory at normal levels, while downstream enterprises exercised caution in procurement.

Polysilicon

Prices

Yesterday, the quoted price for N-type recharging polysilicon was 45-49 yuan/kg, and for granular polysilicon, it was 43-46 yuan/kg. Market quotes remained stable for the time being, with spot market order signing basically wrapping up. Downstream price transmission encountered certain resistance, and polysilicon prices held steady amid wait-and-see sentiment.

Production

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

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. Market wait-and-see sentiment strengthened.

Wafer

Prices

The market price for N-type 18X wafers is 1.2-1.2 yuan/piece; the price for 210R-type wafers is 1.35-1.35 yuan/piece. Wafer prices held steady, with manufacturers focusing on stable shipments. Rumors of a 0.02 yuan/piece price reduction for 210R and 210 wafers were false.

Production

In August, the production schedule for mainstream domestic wafer enterprises was slightly increased. Toll processing production for specialized enterprises significantly increased compared to H1, with leading specialized wafer enterprises taking actions to increase production. The main focus is on observing raw material prices and downstream price transmission.

Inventory

Recently, wafers have been destocking. After the price increase, overall order demand remained normal, with stable shipments maintained.

High-purity quartz sand

Prices

Currently, the domestic price for inner-layer sand is 59,000-64,000 yuan/mt, for middle-layer sand is 27,000-33,000 yuan/mt, and for outer-layer sand is 17,000-22,000 yuan/mt. This week, domestic high-purity quartz sand prices continued to hold steady. Recently, the degree of bargaining among sand enterprises has increased compared to before, and there has been a slight recovery in demand for quartz sand. Sand enterprises have shown a strong reluctance to budge on prices, but the fundamental situation of oversupply has not yet improved, making it difficult for sand prices to rise easily.

Production

This week, quartz sand production remained basically stable. Overseas production was normal, and the next batch of imported sand is expected to arrive at the port on schedule.

Inventory

Sand enterprise inventory slightly increased. Under the influence of the subsequent rise in wafer production schedules, sand enterprise inventory is expected to decline.