Metal silicon market price rises in July

According to the analysis of the Business Society’s market monitoring system, on July 30th, the domestic market price of silicon metal # 441 was based on 10100 yuan/ton, an increase of 1370 yuan/ton or 15.81% compared to July 1st (market price of silicon metal # 441 was 8730 yuan/ton).

From the commodity market analysis system of Shengyi Society, it can be seen that in July, the domestic silicon metal (# 441) market as a whole experienced a broad upward trend. During the month, the market prices of metallic silicon (# 441) in many regions of China have continuously adjusted upwards, and the overall focus of market negotiations has continued to rebound. This is also the first consecutive downturn in the market since the beginning of the year. By the end of July, the overall market price of silicon metal (# 441) had finally returned to the 10000 yuan mark, with a price increase of around 1000-1500 yuan/ton during the month. As of July 30th, the market price reference for metal silicon 441 # in East China is 10100-10300 yuan/ton, in Kunming it is 10000-10300 yuan/ton, in Huangpu Port it is around 10100-10400 yuan/ton, in Tianjin it is 10000-10200 yuan/ton, in Sichuan it is 9600-9800 yuan/ton, and in Shanghai it is 10400-10600 yuan/ton.
Fundamental situation
In terms of inventory: As of April, the overall silicon metal market has been in a slow destocking state. The overall destocking performance of the market in June and July was still good. According to incomplete statistics, as of July 24th, the reference social inventory of silicon metal in major regions was around 535000 tons, a decrease of 77000 tons from the end of the first quarter. Therefore, there has been an improvement in the overall inventory pressure in the current market.
Supply side: Silicon companies in the northern region have reduced production due to equipment, while the southern region has entered a period of abundant water. The overall pace of resuming production is normal, and market supply has decreased in the north and increased in the south, resulting in an overall increase in supply and output.
In terms of demand: Currently, downstream organic silicon enterprises mainly digest the inventory of raw materials in the early stage of metal silicon. In mid to late July, the overall production of organic silicon monomers decreased, and new orders for high priced raw materials were average. Polycrystalline silicon and aluminum silicon were mainly purchased on demand. In August, downstream production expectations have slightly decreased, and demand for metal silicon is expected to increase.
Macroscopically speaking, after the recent proposal of the “anti internal competition and industrial integration” initiative, the sentiment of the metal silicon market has improved, the overall self-discipline of the industry has increased, it has refused vicious competition, the mentality of industry players has improved, and macro news has boosted the recovery of market prices.
Market analysis in the future
At present, the trading atmosphere in the metal silicon market is mild, with large stability and small fluctuations in supply and demand, and overall transmission is still acceptable. Business Society’s metal silicon data analyst predicts that in the short term, the domestic metal silicon spot market will mainly adjust its operation, and specific attention needs to be paid to changes in supply and demand news and the impact of macro information on the market.