Silicon Metal Market in Stagnant Consolidation, Wafer In-Factory Inventory Gradually Accumulating [SMM Silicon-Based PV Morning Meeting Minutes]

Published: Jun 3, 2026 09:04
[SMM Silicon-Based PV Morning Meeting Summary] Polysilicon: N-type recharging polysilicon was quoted at 33-35.7 yuan/kg. Polysilicon prices remained generally weak, with sluggish market transactions. Previous order signing had concluded, and the current focus was primarily on shipments, with market participants watching for subsequent policy developments. Wafer: Market prices for 18X wafers were 0.88-0.9 yuan/piece, 210RN wafers were priced at 0.98-1.00 yuan/piece, and 210N wafers were priced at 1.18-1.2 yuan/piece. Top-tier players continued to hold prices, and improving quality to justify price increases had become the most pressing task in the wafer segment.

 

SMM June 3 News:

Silicon Coal

Price: Recently, silicon coal market prices also showed a bullish trend amid rising cost support, with prices slightly raised in some regions. Specifically, Shaanxi silicon coal was at 780-850 yuan/mt, with the average price raised by about 25 yuan/mt; Inner Mongolia silicon coal prices reached 1,280-1,320 yuan/mt, with the average price raised by about 30 yuan/mt; Shanxi silicon coal prices reached 1,300-1,600 yuan/mt. In addition, silicon coal in Gansu also edged up slightly, with silicon blended coal prices reaching 990 yuan/mt, up 40 yuan/mt, and silicon granular coal at 1,110 yuan/mt, up 20 yuan/mt.

Supply: Overall loose, with downstream silicon plants maintaining low operating rates, and some coal washing plants facing inventory pressure.

Demand: Amid the continued sluggishness in the silicon metal market, downstream silicon plants maintained overall low operating rates. Current procurement was mainly driven by rigid demand, with overall performance remaining weak.

Silicon Metal

Price: Yesterday, SMM east China oxygen-blown #553 silicon was at 9,100-9,300 yuan/mt, #441 silicon at 9,300-9,400 yuan/mt, and #421 silicon at 9,300-9,500 yuan/mt. Silicon metal prices moved sideways. The silicon metal market saw both supply and demand increasing, with the market remaining stagnant. Mainstream offers from silicon suppliers stayed stable, while downstream users showed strong wait-and-see sentiment, and market trading atmosphere was sluggish.

Production:

According to SMM data, silicon metal production in May was 331,300 mt, up 3.6% MoM and up 7.6% YoY. Cumulative silicon metal production from January to May 2026 was 1.6319 million mt, up 6% YoY. Entering June, the pattern of both supply and demand increasing for silicon metal is clear. Production resumptions during the rainy season in Sichuan and Yunnan will boost incremental output. Overall, silicon metal production in June is expected to increase MoM to around 360,000 mt.

Inventory:

Social Inventory: According to SMM statistics, as of May 28, social inventory of silicon metal in major regions totaled 560,000 mt, down 2,000 mt WoW (excluding Inner Mongolia, Ningxia, Gansu, and other regions).

Silicone

Price

DMC: The most-traded contract transaction price was 14,300-14,500 yuan/mt, with an average price of about 14,400 yuan/mt. Since the downward shift in the transaction price center of individual monomer enterprises last week, some mid- and downstream clients were stimulated to enter the market for procurement, improving overall market transactions somewhat. However, some clients remained on the sidelines, still holding bearish expectations for market prices, with cautious purchasing sentiment.

D4: Yesterday's quoted price was 14,600-15,200 yuan/mt, with an average price of about 14,900 yuan/mt.

107 Silicone Rubber: Yesterday's quoted price was 14,300-14,600 yuan/mt, with an average price of about 14,450 yuan/mt.

Crude Rubber: Yesterday's quoted price was 15,000-15,400 yuan/mt, with an average price of about 15,200 yuan/mt.

Silicone oil: Yesterday's quoted price was 16,200-16,700 yuan/mt, with an average price of approximately 16,450 yuan/mt.

Production:

According to SMM data, overall silicone DMC production in May was approximately 212,100 mt, up approximately 15.45% MoM, with the industry's overall operating rate at approximately 70%, and enterprises faced increasing supply pressure. Based on the overall production schedule data for June, overall silicone supply is expected to decline approximately 7.78% MoM, and supply expectations are set to contract.

Inventory:

Amid the tug-of-war between sellers and buyers, upstream enterprises' polysiloxane inventory showed an accumulating trend in May.

Polysilicon

Prices:

Polysilicon N-type recharging polysilicon was quoted at 33-35.7 yuan/kg. Polysilicon prices were generally weak, with sluggish market transactions. Previous order signing has concluded, and the focus is now mainly on deliveries, with market participants watching for subsequent policy developments.

Production

In June, some production bases in Qinghai, Sichuan, Inner Mongolia and other regions in China all have plans to ramp up production, and polysilicon production is expected to see a significant increase. Meanwhile, a base in Inner Mongolia recently announced a production cut plan for Q3, but the impact on June production is limited.

Inventory:

Currently, polysilicon inventory decreased. The market saw considerable order signing in the earlier period, with some orders continuing to be shipped, and polysilicon inventory declined.

Wafer

Prices

Market prices for 18X wafers were 0.88-0.9 yuan/piece, 210RN wafers at 0.98-1.00 yuan/piece, and 210N wafers at 1.18-1.2 yuan/piece. Top-tier players are still holding prices, and improving quality to raise prices has become the most pressing task for the wafer segment.

Production

According to the latest SMM survey feedback, wafer production schedules for June are expected to be around 54-55 GW. Some enterprises have not yet finalized their production schedule plans, and we will make adjustments based on actual conditions going forward.

Inventory

The pace of inventory buildup at wafer enterprises showed an accelerating trend. Marginal demand for bonded zone inventory orders outside China weakened, and the wafer segment is still expected to maintain a slight surplus in June.

High-Purity Quartz Sand

Prices

Currently, China's inner-layer sand prices were 40,000-45,000 yuan/mt, middle-layer sand prices were 20,000-24,000 yuan/mt, and outer-layer sand prices were 16,000-18,000 yuan/mt. Imported high-purity quartz sand prices were 50,000-55,000 yuan/mt. 33-inch quartz crucible prices were 6,000-6,200 yuan/piece, and 36-inch quartz crucible prices were 6,700-6,900 yuan/piece. Overall sand prices remained stable.

Production

In June, quartz sand enterprises' production schedules are expected to edge up. Driven by increased wafer production schedules, multiple crucible manufacturers reported improving order demand. China's high-purity quartz sand enterprises formulated production plans to match wafer demand, while an ex-China high-purity quartz sand enterprise postponed its production ramp-up plan.

Inventory

In Q2 2026, crucible enterprises made reasonable purchases based on wafer planned production, and quartz sand inventory levels continued to increase.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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Silicon Metal Market in Stagnant Consolidation, Wafer In-Factory Inventory Gradually Accumulating [SMM Silicon-Based PV Morning Meeting Minutes] - Shanghai Metals Market (SMM)