Price trend

According to the analysis of the SunSirs' market monitoring system, on August 6th, the reference price for the domestic market of silicon metal #441 is 12,100 RMB/ton, which was basically the same as August 1st. Compared with July 21st (the market price of silicon metal #441 was 12,560 RMB/ton), the price decreased by 460 RMB/ton, a decrease of 3.66%.

Analysis review

In July, the domestic silicon metal market continued to decline, with a drop of over 8% in July. At the end of July, the market price of silicon metal remains basically at the bottom. Entering August, the market for silicon metal finally stops falling and stabilizes. In the early stage of August, the overall market for silicon metal remains relatively stable, with prices mainly consolidating at the bottom. As of August 6th, the domestic market price for silicon metal 441 is around 11,900-12,450 RMB/ton, and the market price for silicon metal 553 (oxygen supply) in East China is around 11,750-11,850 RMB/ton.

On the supply side: Currently, the domestic price of metallic silicon has fallen to the edge of some manufacturers' cost lines, and some silicon factories have reduced production and shut down their furnaces. However, the overall supply in the market is mainly loose.

Downstream: As entering August, the downstream market for metallic silicon has shown average performance in terms of boosting. The overall production of aluminum alloys downstream of metallic silicon is relatively low, and the demand for metallic silicon is mostly based on on-demand procurement. The current production rate of polycrystalline silicon is basically the same as at the end of July, and the demand for metallic silicon is basically stable, with little change at present. In the downstream organic silicon market, in August, some factories in the organic silicon market that had previously stopped work for maintenance may have recently resumed operations, resulting in a slight increase in demand for metallic silicon. However, the overall support and conversion provided to the market are limited.

Market outlook

At present, the market price of silicon metal in the southwest region is close to the cash cost line. Therefore, most silicon companies continue to have weak willingness to sell at a discount, and the silicon metal market is gradually stabilizing and operating. At present, downstream demand procurement for silicon metal is still mainly based on on-demand procurement. The metal silicon data analyst from SunSirs believes that in the short term, the domestic silicon metal market will mainly consolidate, and the specific trend needs to pay more attention to changes in supply and demand news.

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