Silicon Metal August Production Schedule Up MoM, Recent Significant Price Drop for Silicone DMC [SMM Silicon-Based PV Morning Meeting Summary]

SMM August 20 News:

Silicon Coal

Prices: This week, the silicon coal market operated steadily with relatively stable prices. Currently, the average price of non-caking 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 lump coal is 990 yuan/mt, the average price of silicon coal in Shaanxi is 900 yuan/mt, and the average price of lump coal in Ningxia is 1,160 yuan/mt.

Supply: Most washing plants are still arranging production schedules based on order conditions, basically achieving a balance between production and sales.

Demand: At present, downstream players remain cautious about the future market, mainly observing, and purchasing only to meet essential restocking needs.

Silicon Metal

Prices: Yesterday, SMM East China oxygen-blown #553 silicon was at 9,300-9,500 yuan/mt, and #441 silicon was at 9,600-9,800 yuan/mt, unchanged from the previous day. The futures market continued to fluctuate considerably; yesterday, the main contract 2511 opened at 8,615 yuan/mt, reached a high of 8,730 yuan/mt, a low of 8,525 yuan/mt, and closed at 8,625 yuan/mt, up 20 yuan/mt from the previous day. Recently, spot prices have been stagnant, with market transactions maintaining a need-based level, putting pressure on prices.

Production:

A small amount of new resumption capacity has released production, and weekly industrial silicon production increased WoW, with August supply showing a slight increase trend.

Inventory:

Social Inventory: As of August 14, SMM statistics show that the total social inventory of industrial silicon in major regions was 545,000 mt, down 2,000 mt WoW. Among these, the general warehouse inventory was 117,000 mt, down 1,000 mt WoW, and the delivery warehouse inventory (including unregistered warrants and spot parts) was 428,000 mt, down 1,000 mt WoW. (Excluding Inner Mongolia, Gansu, etc.)

Silicone

Prices

DMC: Current quotes are 10,500-11,500 yuan/mt. Compared to the beginning of last week, the average transaction price of DMC fell by 1,000 yuan/mt. Currently, back-and-forth negotiations between upstream and downstream are gradually entering a critical stage, with dimethyldichlorosilane plants competing to offer discounts to stimulate downstream enterprises to make purchases.

D4: Current quotes are 11,000-12,500 yuan/mt, down 750 yuan/mt from the beginning of last week.

107 Silicone Rubber: Current quotes are 12,000-12,500 yuan/mt, down 500 yuan/mt from the beginning of last week.

Raw Rubber: Current quotes are 12,500-13,000 yuan/mt, down 300 yuan/mt from the beginning of last week.

Silicone Oil: Current quotes are 13,500-14,000 yuan/mt, down 350 yuan/mt from the beginning of last week.

Production:

Currently, the overall industry operation of dimethyldichlorosilane plants remains at a relatively high load, with overall production relatively stable compared to last week. However, the implicit pressure on enterprises has increased, and some individual dimethyldichlorosilane enterprises plan to undergo maintenance and reduce loads.

Inventory:

This week, DMC prices significantly declined. Downstream enterprises made just-in-time procurement based on actual demand, so the inventory of some dimethyldichlorosilane enterprises remained at a normal level.

Polysilicon

Price

Yesterday, the price of N-type recharging polysilicon was 45-49 yuan/kg, and the price of granular polysilicon was 43-46 yuan/kg. Market quotations were temporarily stable. The signing of spot market orders was basically concluded. There was some resistance to downstream price transmission, and polysilicon prices were holding steady in a wait-and-see sentiment.

Production

In August, polysilicon production is expected to reach around 130,000 mt. There is still a certain risk of surplus for the month, with the main increase coming from Yunnan, Sichuan, and other regions.

Inventory

This week, polysilicon inventory rebounded slightly. The pace of cargo pick-up for previous orders slowed down. New orders, except for granular polysilicon, were limited, and the wait-and-see sentiment in the market intensified.

Wafer

Price

The market price of N-type 18X wafers was 1.2-1.2 yuan/piece; the price of 210R model wafers was 1.33-1.35 yuan/piece. Major manufacturers sold at regular prices, while smaller factories had slightly lower prices by 0.01-0.02 yuan/piece for 210R and 210 models. Overall, the supply and demand for 183 wafers were supported. After wafer companies met in Beijing this afternoon, it will have an impact on future wafer price trends.

Production

In August, the production schedule of major domestic wafer enterprises increased slightly. The production of toll processing by specialized enterprises has significantly increased compared to H1. Leading specialized wafer enterprises have taken steps to boost production, mainly observing raw material prices and downstream price transmission.

Inventory

Wafers have been destocking recently, and overall inventory levels are currently reasonable, with enterprises maintaining steady shipments.

High-purity Quartz Sand

Price

Currently, the price of inner-layer sand in China is 59,000-64,000 yuan/mt, the price of middle-layer sand is 27,000-33,000 yuan/mt, and the price of outer-layer sand is 17,000-22,000 yuan/mt. This week, the price of high-purity quartz sand in China remained stable, and the center of transactions did not decline further. The overall market showed a stalemate, and crucible prices also stabilized after stopping their decline. Downstream enterprises mainly made just-in-time procurement, and it is expected that the price of sand will remain stable in the near future.

Production

This week, the operation of quartz sand enterprises remained stable. Overseas production was normal, and the supply was relatively sufficient. In August, there was a slight increase in the production schedule.

Inventory

This week, the inventory of sand enterprises remained stable, and market transactions increased WoW.