[SMM Silicone Weekly Review: Transaction Prices of Silicone Products Hit New Stage Lows Again, While Tug-of-War Between Upstream and Downstream Persists] DMC prices continued to weaken significantly this week, with the transaction range falling to 11,300-11,500 yuan/mt, down 850 yuan/mt WoW. Demand side, with no improvement in end-use demand, market transaction prices kept declining, making mid- and downstream clients more cautious in purchasing. Currently, although raw material inventories at some clients have fallen to low levels, they remain on the sidelines, showing little willingness for concentrated stockpiling, and maintain small, rigid-demand purchases while pushing for lower prices, waiting for market prices to fall further to their psychological expectations before buying the dip and stockpiling.

Silica: This week, silica market prices remained stable overall. On the supply side, output at some regional mines declined due to seasonal factors, but overall silica supply was ample. Additionally, high-grade quality ore sources were concentrated, creating a clear divergence between high- and low-grade material. On the demand side, weak silicon metal prices suppressed purchasing sentiment. Production resumptions in the Southwest only slightly lifted rigid demand. Silicon plants strictly controlled costs, bought small lots at low prices, and the sentiment to push for lower prices remained strong. Silicon coal: This week, the silicon coal market showed regional divergence. Weekly transaction prices for Xinjiang binding silicon coal dropped by 50 yuan/mt to 1,300-1,400 yuan/mt, while prices in other regions held steady. On the supply side, some coal processing plants continued to produce based on sales according to orders and had no inventory pressure, while some under inventory pressure sold at a discount to destock. On the demand side, production resumptions at silicon plants in the Southwest brought a slight increase in rigid demand, but downstream buyers strictly controlled costs and continued to push for lower prices, with purchases made based on monthly rigid demand. Petroleum coke: This week, trading in China’s petroleum coke market showed slight divergence, with the low-sulphur petroleum coke market performing well, while the medium- and high-sulphur petroleum coke market came under some pressure. Port spot cargoes of Formosa Plastics petroleum coke saw continuous price increases due to improved specifications, with mainstream prices rising to 1,450-1,500 yuan/mt. According to SMM data, as of Thursday this week, the 4# petroleum coke price index in Shandong stood at 2,003.69 yuan/mt, down 0.74% from last Thursday. On the supply side, units that were under maintenance earlier gradually resumed production this week, and coking operating rates recovered slowly. On the demand side, improved purchasing enthusiasm in the downstream anode materials market supported firm low-sulphur petroleum coke prices, while the carbon used in aluminum production market maintained a wait-and-see sentiment, with insufficient purchase willingness for high-priced products hindering the pass-through of price hikes. Compounded by global instability, continuously climbing crude oil prices provided cost support. In the short term, petroleum coke prices are expected to consolidate, with divergence across specifications persisting. Electrode used in silicon production: This week, electrode prices stayed at low levels. Recently, operating rates of downstream silicon plants showed regional divergence, but overall, driven by increased output in the Southwest and Inner Mongolia, production improved, leading to a modest recovery in electrode rigid demand and slightly easing inventory pressure on producers. However, the overall silicon metal market remained weak, with cautious downstream purchasing. As electrode supply was ample, there was no support for price increases, and prices are expected to consolidate at lows in the near term. For more detailed market information and dynamics, or if you have other inquiries, please call 021-20707889. > View SMM Silicon Product Prices > Subscribe to View SMM Historical Metal Spot Prices > Click to Access SMM Metal Industry Chain Database

[SMM Silicon-based PV Morning Meeting Minutes] Polysilicon: N-type recharging polysilicon quotes are 30.6-33 yuan/kg, and order signing remains limited at present. However, as meetings are held, some enterprises have strong expectations for H2 policies, some believe a series of related measures will follow, and market sentiment has improved somewhat. Wafers: Market wafer prices are 18X (0.82-0.86 yuan/piece), 210RN (0.93-0.97 yuan/piece), and 210N (1.13-1.17 yuan/piece). As wafer energy consumption standards are further tightened and expectations of upstream price increases grow, wafer enterprises have turned cautious, waiting for meeting outcomes before deciding on pricing strategies. Currently, wafer prices are already near cash cost, so the likelihood of another sharp decline is relatively small.

[Silicon Metal Rebounds After Breakdown Then Stagnates Again; Market Trading Heat Cools]: This week, the most-traded silicon metal futures contract price returned to around 8,450 yuan/mt and moved sideways, with a narrowed fluctuation range. During the week, overall market open interest continued to decline. The most-traded 09 contract’s open interest fell 53,000 lots from last Friday, and the weighted open interest of all contracts fell 54,000 lots from last Friday. Market trading sentiment cooled, and wait-and-see sentiment among funds increased. Spot prices as of July 16: SMM east China oxygen-blown #553 silicon stood at 9,100-9,200 yuan/mt (up 150 yuan/mt WoW), #441 silicon at 9,200-9,300 yuan/mt (up 50 yuan/mt WoW), and #421 silicon at 9,300-9,400 yuan/mt (flat WoW). During the week, silicon enterprises’ offers mostly remained stable. After active procurement transactions last week by traders and some downstream players, market trading heat declined this week. Silicon metal buying and selling were in a stalemate, and prices shifted to consolidation.

[SMM Silicone Weekly Review: Prices of Silicone Products Fell Sharply, Market Dominated by Bearish Sentiment] This week, although China's silicone DMC market supply contracted slightly, it remained larger than demand overall. The tug-of-war between upstream and downstream intensified, and the market returned to a state of price war competition. Transaction prices dropped sharply to a low for the year.

Silica: This week, silica market prices remained broadly stable, with regional quotations holding steady. The mine-mouth price for high-grade silica in Hubei was still at 310-350 yuan/mt, while the mine-mouth price for high-grade silica in Inner Mongolia stood at 290-330 yuan/mt, low-grade silica in Inner Mongolia at 200-240 yuan/mt, and low-grade silica in Yunnan at 150-180 yuan/mt. On the demand side, just-in-time procurement posted a slight increase, but silicon metal plants strictly controlled costs and prioritized price comparisons in procurement, intensifying competition for supply among regions. However, overall supply-side operations were affected by weather and other factors, leading to a slight decline in operating rates; supply tightened somewhat but remained ample overall. As a result, silica prices are expected to stay stable in the short term. Silicon coal: This week, silicon coal market prices held steady, with silicon granular coal in Gansu at 1,140 yuan/mt and silicon mixed coal at 1,060 yuan/mt; silicon granular coal in Inner Mongolia and Ningxia at 1,340 yuan/mt; Xinjiang non-caking silicon coal at 855 yuan/mt; and Xinjiang caking silicon coal at 1,400 yuan/mt. Demand side, Southwest silicon metal plants continued to resume production during the rainy season, and the industry operating rate steadily improved, boosting just-in-time procurement volume for silicon coal, which edged up WoW. However, spot silicon metal prices remain under pressure, and downstream silicon metal plants are struggling with weak profitability, leading to more conservative raw material procurement strategies. Most are restocking only as needed, and cost-control demands are prominent, fueling strong sentiment in the market to push for lower prices. Petroleum coke: This week, China’s petroleum coke market saw decent trading activity. Port spot quotations for Formosa Plastics petroleum coke rose markedly, with mainstream prices climbing to 1,400-1,450 yuan/mt. SMM data showed that as of Thursday, the Shandong 4# petroleum coke price index was at 2,018.56 yuan/mt, up 8.06% from last Thursday. During the week, typhoon-related temporary closures at Shandong ports disrupted discharge and transport of imported petroleum coke, prompting downstream users to turn to domestic supply for just-in-time procurement. Demand for domestic substitution was released in a concentrated manner. Coupled with restricted shipping routes driving up refineries’ crude oil procurement cost expectations, a confluence of positive factors pushed China’s petroleum coke prices significantly higher. Subsequently, as Shandong ports gradually resumed loading and unloading operations, trading sentiment in the domestic coke market shifted from strength to stability, entering a consolidation and adjustment phase. Electrode: This week, prices of electrodes used in silicon production remained low, lacking upward momentum amid weak supply and demand. Production resumptions at Southwest silicon plants brought a small increase in just-in-time procurement, but the overall operating rate of the silicon metal industry is still low, keeping the consumption pace of electrodes used in silicon production slow. Currently, ordinary power carbon electrodes with diameter 960-1,100mm are quoted at 6,000-6,600 yuan/mt; ordinary power carbon electrodes with diameter 1,272mm at 7,000-7,400 yuan/mt; ordinary power graphite electrodes with diameter 960-1,100mm at 10,800-11,200 yuan/mt; ordinary power graphite electrodes with diameter 1,272mm at 12,200-12,800 yuan/mt; and ordinary power graphite electrodes with diameter 1,320mm at 12,800-14,200 yuan/mt. If you would like to learn more detailed market information and dynamics, or have other information needs, please call 021-20707889.

[SMM Silicon-Based PV Morning Meeting Minutes] Silicon metal: Yesterday, SMM oxygen-blown #553 silicon in east China was near 9,100-9,200 yuan/mt, and #441 silicon was near 9,200-9,300 yuan/mt. The most-traded futures contract consolidated at 8,450-8,500 yuan/mt. The spot-futures price spread of silicon metal strengthened, and coupled with persistently high road freight rates, silicon metal prices in east China stayed relatively firm. Cost support at the bottom for futures prices remains clear, while the upside is capped by the supply-demand relationship, keeping silicon metal prices moving sideways in a narrow range. Wafers: In the market, 18X wafer prices were 0.85-0.87 yuan/piece, 210RN wafers 0.95-0.97 yuan/piece, and 210N wafers 1.15-1.17 yuan/piece. This round, the low end of the range for 210R and 210N wafers edged down by 0.01 yuan/piece, and current prices represent actual trading levels, with overall wafer prices well-supported.

[SMM Cast Aluminum Alloy Morning Comment: Cost Increases Support Price Hikes, Off-Season Demand Suppresses Gains] Yesterday, price adjustment intentions in the ADC12 market diverged: cost-side increases led some enterprises to try to follow the rise, while others still chose to keep their quotes stable for the time being. Currently, the traditional consumption off-season atmosphere is intensifying, with downstream orders and transactions remaining weak, and price increases facing some resistance. Against the backdrop of insufficient demand support, enterprises overall are mainly watching the market and selling at stable prices. In the short term, the spot ADC12 price is expected to still show a pattern where cost support and demand suppression coexist, mainly moving sideways.

[SMM Silicone Weekly Review: Firm Quotations Amid Sluggish Market Transactions] This week, China's DMC market overall showed a weak pattern with firm quotations, sluggish transactions, and a stalemate in the tug-of-war between upstream and downstream. Price-wise, the mainstream quotation range for DMC was 13,900-14,000 yuan/mt. By region, monomer enterprise quotations in Shandong stood at 13,900 yuan/mt, while mainstream quotations in other regions were mainly at 14,000 yuan/mt.

[Tug-of-war between longs and shorts intensifies, silicon metal price fluctuations widen]: During the week, silicon metal futures prices fell below cost support, and the tug-of-war between longs and shorts in the market intensified. Silicon enterprises in Sichuan and Yunnan with production resumption plans have basically completed their production resumptions. Supply disruptions in the north have limited impact on total production expectations, and industry fundamentals have yet to show a directional turning point. Clear cost support on the downside limits the downside room for prices; however, the supply-demand loose pattern remains unchanged, and upward moves lack fundamental drivers.