Price trend

Recently, the quotation of metal silicon remained stable, with a strong willingness to stand up in the Southwest regions. As of July 26th, the price of 441# metal silicon in Kunming was 14,000-14,100 RMB/ton, while the price in Sichuan was 13,500-13,700 RMB/ton.

Analysis review

On the supply side, the production in the main production areas continued to increase last week.

In the Sichuan region, due to the impact of the Universiade, in order to ensure the electricity supply and air quality in Chengdu during the Universiade, some silicon factories in the surrounding areas of Chengdu were requested to suspend production. It is understood that last week, all five industrial silicon furnaces in Yingjing County of Ya'an were shut down. At zero o'clock on the 26th, a total of 10 silicon plants in Jinkouhe District, Ebian County and Baoxing County of Ya'an were shut down. The supply in Sichuan had decreased.

In the Yunnan region, construction was at a high level, and most manufacturers had resumed production. As of July 26th, the start-up rate had exceeded 70%, and there was limited room for future growth.

In Xinjiang, the resumption of production of furnaces after production suspension in the early stage had been promoted, and there is still room for further growth in output, which also led to an increase in low price transactions in the northwest market.

In terms of demand, the overall market demand remained unchanged. The silicone DMC market continued to decline, with high inventory. A single factory in Shandong and a leading large factory had lowered their prices, while some single factories followed suit. The price of polycrystalline silicon remained stable, and silicon material manufacturers continued to operate normally. However, inventory continued to be digested due to the improvement in downstream demand, and prices will remain low in the near future. The process of continuing to rise in the short term will not be too long. The aluminum alloy market remained stable, and the operating rate of aluminum alloys remained flat month on month.

Market outlook

The increase in silicon metal production in Sichuan and Yunnan was limited, and the quotation was stable and firm, while Xinjiang was actively resuming production, with more low price transactions in the market, suppressing prices in the south. Overall, there has been no significant change in the fundamentals of metallic silicon, and it is expected that the price of metallic silicon will operate smoothly in the short term.

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