SunSirs: The Pressure Continued, and Silicon Prices Fell Again

Price trend

On the 14th, the price of metal silicon continued to decline deeply, mainly due to a significant reduction in prices by major factories in the northwest. Downstream products continued to decline in price, and demand from end enterprises continued to be weak. Metal silicon transactions were difficult and prices were low. According to the Commodity Market Analysis System of SunSirs, the domestic quotation for 441# metal silicon was 13,500-13,800 RMB/ton, with an average price of 13,670 RMB/ton, a decrease of 1.58% compared to the previous trading day.

On the supply side:

It is understood that as of June 8th, the silicon metal furnace opening rate was around 41.64%, with 132 furnaces opened in Xinjiang, 43 furnaces opened in Sichuan, and 43 furnaces opened in Yunnan. The production of metal silicon in the northwest region decreased, and there were rumors in the market that the electricity bills in the Ili River Valley in Xinjiang had increased. The cost of silicon factories increased, and the expectation of production reduction increased. The production of metal silicon in the southwest region had increased. With the arrival of the rainy season, the profit margin of metal silicon production had slightly recovered, and some silicon factories were expected to resume production. However, due to the impact of low prices, the operating rate was still at a relatively low level.

In terms of demand:

Downstream domestic prices of polysilicon and silicone stabilized, with mainstream prices in the polysilicon market reaching 126,666.67 RMB/ton and 14,240 RMB/ton, respectively. The supply performance of polysilicon was abundant, and downstream silicon wafer manufacturers were becoming more wait-and-see. They were purchasing according to demand, and the negotiation method was now mostly weekly, leading to weak and stable operation of polysilicon prices. The overall low end price inquiry atmosphere on the silicone DMC market had improved, but overall demand remained weak. The operating rate of silicone monomer enterprises continued to be low, and it is expected that the price of silicone will remain stable and weak in the short term. Aluminum alloy enterprises were operating on a low level and maintained a rigid demand for purchasing metal silicon. The overseas trading volume of metal silicon in the export market was still relatively low, making it difficult to achieve significant growth in the short term.

Market outlook

Overall, metal silicon showed weakness in all aspects. During the rainy season, the operating rate of silicon factories slowly increased, and inventory remained high. Downstream silicone monomer factories still adopted the method of reducing production and ensuring price, with less demand for silicon. Aluminum alloy steel purchased mainly on demand, and polysilicon prices continued to decline. Procurement was not active. It is expected that metal silicon will continue to operate weakly in the short term.

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