SMM December 17 News:
Silicon Coal
Price: Silicon coal prices remained largely stable this week. However, driven by both supply and demand factors, oxygen-blown #553 silicon coal prices in Xinjiang are expected to rise, while prices in other regions were basically stable.
Supply: Although raw coal supply tightened, silicon coal production schedules maintained a pace of producing based on sales.
Demand: From a weekly operating rate perspective, downstream silicon plants' operating rates were stable WoW, resulting in relatively steady overall demand for raw material silicon coal.
Silicon Metal
Price: Spot silicon metal prices were basically stable. Yesterday, SMM oxygen-blown #553 silicon in east China was quoted at 9,100-9,300 yuan/mt, and #441 silicon at 9,300-9,500 yuan/mt. Futures prices moved sideways; the most-traded silicon futures contract closed at 8,365 yuan/mt yesterday, up 15 yuan/mt from the previous day. After smooth spot sales by merchants following last week's significant futures price drop and a stronger spot-futures price spread, the spread was largely stable this week. Silicon enterprises held prices firm and were reluctant to sell at low prices. Spot prices remained stagnant and stable.
Production:
Operating rates at silicon enterprises were basically stable recently. The weekly silicon metal production schedule showed minor fluctuations, resulting in limited WoW change in total supply.
Inventory:
Social Inventory: As of December 11, SMM statistics showed total silicon metal social inventory in major regions was 561,000 mt, an increase of 3,000 mt WoW. This included 136,000 mt in general social warehouses, up 5,000 mt WoW, and 425,000 mt in delivery social warehouses (including unregistered warrants and spot inventory portions), down 2,000 mt WoW. (Excluding Inner Mongolia, Ningxia, Gansu, etc.)
Silicone
Price
DMC: Transaction prices yesterday were 13,500-13,700 yuan/mt, stable WoW. Currently, monomer enterprises primarily focus on fulfilling existing orders, while downstream customers mainly consume existing raw material inventories, leading to sluggish new order transactions in the market.
D4: Quotes yesterday were 13,500-14,200 yuan/mt, stable WoW.
107 Silicone Rubber: Quotes yesterday were 14,000-14,300 yuan/mt, stable WoW.
Base Gum: Quotes yesterday were 14,000-14,500 yuan/mt, stable WoW.
Silicone Oil: Quotes yesterday were 15,000-15,200 yuan/mt, stable WoW.
Production:
With recent emission reduction plans initiated by various monomer enterprises, supply showed a slight downward trend.
Inventory:
Inventory levels at monomer enterprises remained basically stable this week.
Polysilicon
Price:
N-type recharging polysilicon was quoted at 49.6-55 yuan/kg, granular polysilicon at 49-51 yuan/kg, and the polysilicon price index at 51.9 yuan/kg. Market prices remained stable; currently, top-tier enterprises have some intention to push prices higher, but no actual transactions occurred in the market. Downstream resistance to high prices is evident. The trading atmosphere this month may be weak, and the market needs continuous monitoring.
Production:
The expected domestic polysilicon production in December is 113,500 mt, mainly due to production cuts in Inner Mongolia. Further production cut plans may still be in place, but a significant weakening of downstream demand is also noticeable. Looking at the supply-demand balance in January, there might be a slight inventory buildup.
Inventory:
This week, polysilicon inventory continued to rise. The current market is quite chaotic, with crystal pulling enterprises showing strong resistance to high-priced resources. Market transactions are limited, leading to further inventory buildup.
Wafer
Price
The price of 18X wafers in the market is 1.15-1.2 yuan/piece, 210RN wafers are 1.2-1.25 yuan/piece, and 210N wafers are 1.45-1.5 yuan/piece. Wafer prices are expected to increase soon. Yesterday, a top-tier enterprise raised its quotes for all sizes of wafers by 0.05 yuan/piece. Considering the recent centralized procurement and price hikes by cell enterprises, it is highly likely that the downstream will accept this round of wafer price increases.
Production
In December, wafer enterprises significantly cut production, with a reduction of about 16%, setting a new low for the year. Multiple downstream sectors are facing similar situations. Recently, two enterprises have gradually resumed production, strictly adhering to production quotas while reasonably adjusting their inventory structures.
Inventory
The rate of inventory accumulation for wafer enterprises has slowed down. Cell plants have started stockpiling and restocking, and the total wafer inventory is now approaching a reasonable level.
High-purity quartz sand
Price
Currently, the price of inner layer sand in China is 55,000-60,000 yuan/mt, middle layer sand is 20,000-30,000 yuan/mt, and outer layer sand is 15,000-20,000 yuan/mt. Recently, the price trend of domestically produced sand has stabilized, while negotiations for imported sand remain in a stalemate, with expectations of a decline.
Production
In December, domestic high-purity quartz sand enterprises saw relatively large production cuts, partly due to seasonal factors and partly because the supply of crucibles decreased in line with reduced wafer production schedules, leading to weaker demand. Quartz sand enterprises appropriately cut production to match supply and demand.
Inventory
Quartz sand inventory levels increased slightly, with crucible enterprises reducing their purchase volumes.
