Silicon metal operating rate increases due to electricity prices, polysilicon producers continue to cut production

Silicon Metal

Prices

Last week, the mainstream transaction prices of spot silicon metal remained stable, forming a price spread with silicon futures prices. Downstream acceptance of prices was poor, with strong market competition and price stalemate.

Production

Sichuan officially entered the rainy season, and electricity prices were reduced. Silicon companies in the region resumed production on a large scale, and the operating rate increased rapidly. The operating rate in Yunnan remained largely unchanged, while north China maintained high operating rates. As supply increased, the demand for polysilicon decreased.

Inventory

Social Inventory: According to SMM statistics, as of May 31, the national social inventory of silicon metal was 393,000 mt, an increase of 7,000 mt WoW. Among them, the social general warehouse inventory was 107,000 mt, an increase of 1 mt WoW, and the social delivery warehouse inventory was 286,000 mt (including unregistered warrants), an increase of 6,000 mt WoW.

Polysilicon

Prices

The mainstream prices of N-type polysilicon were 40-43 yuan/kg, and the mainstream prices of dense polysilicon were 34-37 yuan/kg. At the end of the month, together with the maintenance of multiple companies, the frequency of polysilicon procurement increased.

Production

The number of companies undergoing maintenance continued to increase over time, with leading companies experiencing significant production cuts. The polysilicon production in June is expected to drop sharply by 30,000-40,000 mt.

Inventory

With the reduction in production and the increase in polysilicon procurement, the polysilicon inventory has stopped increasing.

Modules

Prices

Last week in the module market, the mainstream transaction prices for bifacial monocrystal PERC modules (182mm) were 0.74-0.82 yuan/W, for bifacial monocrystal PERC modules (210mm) were 0.76-0.84 yuan/W, for N-type 182mm modules were 0.8-0.86 yuan/W, and for N-type 210mm modules were 0.84-0.87 yuan/W. Module prices remained relatively stable with minor fluctuations.

Production

The module production in May is expected to decline. Under the pressure of high inventory and competition, the production schedule for June is expected to decrease MoM.

Inventory

The demand growth is slow, and the current module inventory level is relatively high but temporarily controllable.

High-purity Quartz Sand

Prices

Domestic high-purity quartz sand prices continued to decline. The current prices for inner layer sand are 170,000-190,000 yuan/mt, for middle layer sand are 90,000-120,000 yuan/mt, and for outer layer sand are 24,000-50,000 yuan/mt. To promote transactions, prices are mainly falling.

Production

On the supply side, recent domestic and overseas supplies have remained stable, with no new production capacity added, and existing production lines are operating normally.

Inventory

The current inventory of high-purity quartz sand has increased WoW, with market transaction activity weakening and downstream companies mainly making just-in-time purchases.

PV Glass

Prices

3.2mm single-layer coated: The price of 3.2mm single-layer coated PV glass is 26.0-27.0 yuan/sqm, stable, with expected future price drops.

3.2mm double-layer coated: The price of 3.2mm double-layer coated PV glass is 27.5-28.5 yuan/sqm, stable, with expected future price drops.

2.0mm single-layer coated: The price of 2.0mm single-layer coated PV glass is 17.5-18.5 yuan/sqm, stable, with expected future price drops.

2.0mm double-layer coated: The price of 2.0mm double-layer coated PV glass is 18.5-19.5 yuan/sqm, stable, with expected future price drops.

Production

In May, domestic PV glass production lines continued to increase. Currently, a new 1,000 mt/day kiln has been added in Hebei, a new 1,200 mt/day kiln in Yunnan, and a new 1,200 mt/day kiln in Guangxi.

Inventory

In terms of inventory, recent inventory levels have continued to rise, and with the recent decline in module demand, the risk of inventory accumulation has increased.