Silicon Metal Downstream Purchasing Sentiment Not Positive Polysilicon Trading Negotiations Increase [SMM Silicon-Based PV Morning Meeting Summary]

SMM September 3 News:

Silicon coal

prices: Silicon coal prices remained stable this week. The current average price of non-caking silicon coal in Xinjiang was 810 yuan/mt, caking silicon coal averaged 1,300 yuan/mt, silicon mixed coal in Gansu was 880 yuan/mt, granular coal averaged 990 yuan/mt, silicon coal in Shaanxi was 900 yuan/mt, and granular coal in Ningxia was 1,160 yuan/mt.

Supply: Operating rates at some coal washing plants increased slightly, but overall supply remained production-scheduled based on order volumes.

Demand: Overall demand saw a minor increase, though it remained primarily rigid.

Silicon metal

prices: Yesterday, SMM oxygen-blown #553 silicon in east China traded at 9,000-9,200 yuan/mt, up 50 yuan/mt from the previous day. In the futures market, the main SI2511 contract opened at 8,480 yuan/mt, peaked at 8,590 yuan/mt, bottomed at 8,440 yuan/mt, and closed at 8,470 yuan/mt, up 95 yuan/mt from the prior trading day. The overall price trend of silicon metal futures was stronger than Monday’s, with some traders raising quotes slightly. However, downstream buyers had procured at lower prices earlier, showing limited interest in the increased prices, leading to heavy price suppression sentiment and thin trading volume.

Production:

According to SMM data, silicon metal output in August 2025 reached 386,000 mt, up 14% MoM but down 19% YoY. Cumulative output from January to August 2025 fell 20% YoY.

Inventory:

Social inventory: SMM statistics showed industrial silicon social inventory across major regions totaled 541,000 mt as of August 28, down 2,000 mt WoW. This included 119,000 mt in general social warehouses (up 2,000 mt WoW) and 422,000 mt in delivery warehouses (including unregistered warrants and spot cargo, down 4,000 mt WoW). (Excluding Inner Mongolia, Gansu, etc.)

Silicone

prices

DMC: Current offers stood at 10,500-10,900 yuan/mt, down 50 yuan/mt from early last week. Downstream procurement remained cautious due to unimproved end-use demand, keeping dimethyldichlorosilane plants’ order intake subdued and sustaining discount strategies.

D4: Current offers were 10,700-12,000 yuan/mt, down 50 yuan/mt from early last week.

107 silicone rubber: Current offers were 11,000-11,500 yuan/mt, down 300 yuan/mt from early last week.

Raw rubber: Current offers were 11,500-12,000 yuan/mt, down 250 yuan/mt from early last week.

Silicone oil: Current offers were 13,500-14,000 yuan/mt, down 50 yuan/mt from early last week.

Production:

Currently, the operating rates at some dimethyldichlorosilane plants have declined due to maintenance and load reduction, but other plants continue operating at relatively high rates, keeping overall supply at adequate levels.

Inventory:

Due to stagnant end-use demand and sufficient downstream raw material inventories, downstream procurement remains cautious. Although dimethyldichlorosilane plants offered discounts, overall order intake fell below expectations. Coupled with high operating rates, this led to slight inventory buildup in August.

Polysilicon

Prices

Yesterday, N-type recharging polysilicon prices ranged 49-54 yuan/kg, while granular polysilicon was quoted at 48-49 yuan/kg. Market prices rose as polysilicon enterprises increased offers, citing industry self-discipline and inventory distribution. However, buyers and sellers showed pricing divergence, with crystal pulling plants resisting high-priced resources. Some polysilicon enterprises' aggressive offers also reflected testing sentiment.

Production

China's September polysilicon production schedule is expected below 130,000 mt, mainly due to anticipated production cuts in Inner Mongolia and Qinghai. While industry self-discipline is underway, adjustments remain possible as enterprises monitor competitors' production. Some second- and third-tier production lines have resumed operations to offset reductions.

Inventory

Polysilicon inventories rebounded this week as shipment pace slowed. After price hikes at month-start, market wait-and-see sentiment intensified, resulting in insufficient new order signing.

Wafer

Prices

Current N-type 18X wafer prices stood at 1.2-1.25 yuan/piece, while N-type 210RN wafers were priced at 1.35-1.4 yuan/piece. Amid sharp raw material price increases, top-tier enterprises are preparing a second wafer price hike, reportedly targeting 183mm wafers.

Production

China's September wafer production schedule saw its first upward revision. Post-price increases, most wafer enterprises raised operating rates, with overall output trending higher than August. Further developments depend on raw material prices and downstream price transmission.

Inventory

Recent wafer destocking has maintained overall inventories at reasonable levels, with enterprises sustaining steady shipments.

High-Purity Quartz Sand

Prices

Domestic inner-layer sand prices currently range 59,000-64,000 yuan/mt, middle-layer sand at 27,000-33,000 yuan/mt, and outer-layer sand at 17,000-22,000 yuan/mt. Prices remained stable this week as leading enterprises maintained low-price stability despite strong upward sentiment. However, declining spot prices for imported sand have constrained domestic price increases, with continued price negotiations expected.

Production

This week, quartz sand operating rates remained generally stable. In September, sand enterprises saw some recovery in operating rates, with production expected to increase.

Inventory

This week, quartz sand inventory remained largely stable, with downstream enterprises primarily restocking based on rigid demand.