Silicone Operating Rate Weakens on Emission Reduction, Silicon Metal Stalemate, Price Moving Sideways [SMM Silicon-based PV Morning Meeting Minutes]

SMM June 10 News:

Silicon Coal

Prices: This week, silicon coal market prices were largely stable. Prices by region: Shaanxi (780-850 yuan/mt), Inner Mongolia (1,280-1,320 yuan/mt), Shanxi (1,300-1,600 yuan/mt), Gansu silicon mixed coal (990 yuan/mt), silicon granular coal (1,110 yuan/mt), and Xinjiang non-caking silicon coal (855 yuan/mt).

Supply: Some coal washing plants continued to produce based on sales, arranging production based on orders taken, with no inventory pressure. However, some plants' inventories were under notable pressure due to differences in their coal conditions.

Demand: Overall procurement remained mainly need-based, with restocking as needed and no raw material inventory hoarding.

Silicon Metal

Prices: Yesterday, SMM assessed prices in east China: oxygen-blown #553 silicon at 9,100-9,200 yuan/mt, #441 silicon at 9,300-9,400 yuan/mt, #421 silicon at 9,300-9,500 yuan/mt. Some specification prices edged down slightly from the previous day. Silicon enterprise quotes mostly remained stable, while trader quotes adjusted slightly due to futures price changes. The silicon metal market mainly saw need-based transactions.

Production:

According to SMM data, May silicon metal production was 331,300 mt, up 3.6% MoM and up 7.6% YoY. Entering June, the silicon metal market saw clear supply-demand growth on both sides, with some silicon furnaces in Sichuan and Yunnan resuming production, leading to an MoM increase in monthly silicon metal production.

Inventory:

Social Inventory: SMM statistics as of June 4 showed total social inventory of silicon metal in major regions was 560,000 mt, flat WoW (excluding Inner Mongolia, Ningxia, Gansu, etc.).

Silicone

Prices

DMC: Main transaction prices were 14,500-14,800 yuan/mt, with an average of about 14,650 yuan/mt. After last week's industry meeting, overall market prices rebounded somewhat, with procurement sentiment in the midstream and downstream segments changing slightly, but still mainly focused on need-based small-lot restocking, with some participants remaining bearish in the short term.

D4: Quoted at 14,600-15,200 yuan/mt yesterday, with an average of about 14,900 yuan/mt.

107 silicone rubber: Quoted at 14,300-14,600 yuan/mt yesterday, average about 14,450 yuan/mt.

Raw rubber: Quoted at 15,000-15,400 yuan/mt yesterday, average about 15,200 yuan/mt.

Silicone oil: Quoted at 16,000-16,500 yuan/mt yesterday, average about 16,250 yuan/mt.

Production:

Under the latest industry emission reduction ratios, some upstream producers have already made plans based on production progress, and overall supply is expected to show a decline.

Inventory:

Driven by volume discounts recently, some upstream enterprises have seen their inventory pressure ease, but the current lack of momentum in new orders remains evident. Therefore, inventory is expected to remain under pressure before emission reduction measures take effect.

Polysilicon

Price:

The quoted price for N-type recharging polysilicon is 32.7-35 yuan/kg. Polysilicon prices remain generally weak, with subdued market transactions. Earlier order signings have concluded, and the current focus is primarily on shipments, as the market awaits subsequent policy developments.

Production:

In June, some production bases in Qinghai, Sichuan, and Inner Mongolia within China have plans to ramp up production. Polysilicon production is expected to see a significant increase. Meanwhile, a base in Inner Mongolia recently announced a production cut plan for Q3, though its impact on June’s output will be limited.

Inventory:

Polysilicon inventory has currently decreased. Earlier market order signings were substantial, and some orders continue to be shipped, leading to a reduction in polysilicon inventory.

Wafer

Price:

Market prices for 18X wafers are 0.88-0.9 yuan/piece, for 210RN wafers are 0.98-1.00 yuan/piece, and for 210N wafers are 1.18-1.20 yuan/piece. The top three players are currently holding firm on prices, and overall transaction conditions are more optimistic than expected, though they are facing pressure from both the cell and polysilicon ends.

Production:

According to the latest SMM survey feedback, June wafer planned production is expected to be between 54-55 GW. Except for one enterprise cutting production, several others are ramping up in an orderly manner. Overall wafer supply slightly exceeds demand, and a dual distribution model for some wafers and cells exists.

Inventory:

Wafer enterprise inventory buildup shows a diverging trend. Demand for overseas bonded zone inventory orders is marginally weakening, and the recent surge in ocean freight rates is putting pressure on wafer shipments.

High-purity Quartz Sand

Price:

Current domestic prices are 40,000-45,000 yuan/mt for inner-layer sand, 20,000-24,000 yuan/mt for middle-layer sand, and 16,000-18,000 yuan/mt for outer-layer sand. The price of imported high-purity quartz sand is 50,000-55,000 yuan/mt. The price of a 33-inch quartz crucible is 6,000-6,200 yuan/piece, and a 36-inch quartz crucible is 6,700-6,900 yuan/piece. Overall sand prices are holding steady.

Production:

The planned production of quartz sand enterprises in June is expected to edge up. Influenced by the increase in wafer planned production, multiple crucible factories have reported improving order demand. Domestic high-purity quartz sand enterprises are formulating their production schedules to match wafer demand. Recently, demand for PV-grade high-purity quartz sand used in semiconductors has begun to increase.

Inventory:

Imported sand inventory continued to increase in June. In Q2 2026, crucible enterprises made reasonable purchases based on wafer planned production, leading to a continued rise in overall quartz sand inventory levels.