Review of Silicon Industry Chain during National Day holiday

SHANGHAI, Oct 9 (SMM) -

Silicon metal:

According to SMM survey, the transportation in Xinjiang was affected by the pandemic during the holiday, while the about-to-end rainy reason in Sichuan and Yunnan provinces fuelled the expectations for higher electricity prices. As a result, the silicon metal plants held prices firm. Traders and downstream users made few inquiries during the holiday, and the trades were muted. The actual transaction prices remained flat. As the holiday came to an end, more inquiries were heard in the market, but the news that major silicon metal plants surrendered some of their profits in order to clinch a deal dampened the market sentiments. Traders and downstream users were increasingly wait-and-see. The offers of offgrade silicon (Si ≤ 97%) and some low-grade silicon were less firm, heading for a downward direction. Recently, the pandemic outbreak took places in multiple places across the country, and Xinjiang, one of the main producing areas of silicon metal, was disturbed by the pandemic. It is learn that the production of local enterprises was basically normal, but the transportation of raw materials and finished products has been hindered due to the small number of trucks and strict restriction. SMM will keep a close eye on the pandemic in Xinjiang and the operating rates of silicon metal plants in Sichuan and Yunnan.

Silicone:

The prices of DMC stabilised at 17,500-18,500 yuan/mt during the holiday. Due to limited terminal demand, some enterprises already stocked up as needed before the holiday. This, coupled with the disruption in transportation, led to scarce transactions during the holiday. The silicone monomer manufacturers faced mounting pressure in terms of in-plant inventories. In the wake of the holiday, the live broadcast promotion activities of top-tier silicone monomer manufacturers have enhanced transactions in the market, but given that few silicone monomer manufacturers scheduled overhauls in October and the demand remained sluggish, the oversupply of silicone still sustained. At the same time, the prices of CH3Cl, one of raw materials, were down 1,100 yuan/mt, implying that DMC prices will hardly rebound in the short term.

Polysilicon:

During the holiday, the upstream and downstream enterprises continued to sign long-term order for October. Judging from the market prices at the end of September, the prices during the holiday did not fluctuate greatly, and the mainstream monthly tender price of dense polysilicon remained at 306-310 yuan/kg. Looking ahead, the polysilicon supply is expected to see a significant increase, while the downstream enterprises are obviously resistant to the high-priced resources. With a lack of sustainable upward momentum in the market, the polysilicon prices are expected to remain stable.