The Silicon in March 2021

1) Metallurgical silicon metal market

The price of metallurgical silicon metal rose and fell sharply this month. Among them, oxygen-free metal silicon has risen. Due to the large output and poor transportation of oxygen metal silicon, the market has shown a downward trend, which has led to a rapid decline in prices, which has also driven the entire market down.

2) Chemical-grade silicon metal market

This month, the monthly order delivery volume of chemical-grade silicon metal has basically returned to normal, with a significant increase from the previous month. Affected by factors such as rising raw material costs and electricity price reforms, as well as the shortage of chemical silicon factories in production in the south, silicon plants have a strong willingness to uphold prices. However, downstream transactions are not ideal, so its purchase prices continue.

3) Export situation of metallic silicon

The silicon metal export market was relatively weak in March. Only at the beginning of the month, some large overseas factories bid for tenders. After the orders were signed, they basically entered a wait-and-see state. Because the domestic price of silicon metal is running at a high level and is approaching the high water period when the southern silicon factory resumes production, overseas purchasing businesses generally believe that the price is about to fall, and they wait for the opportunity to drop. Export traders have a heavy wait-and-see mood, almost no willingness to stock up. Individual companies are also eager to sell a small amount of spot stock.

4) Downstream market of metallic siliconThe downstream aluminum market rose sharply and then fell. The market transactions were not ideal, and the high price operation was also in a priceless state. Its production capacity to consume metal silicon is limited, and the silicon market is falling, and the purchase of aluminum plants is negative; the price of organic silicon has risen and fallen sharply. Polysilicon continued to rise, production remained high, and consumption of metal silicon remained stable. 5) Production of metallic siliconIn March, the nationwide silicon metal factory started 243 units, with 12 units reduced month-on-month and 41 units increased year-on-year; the operating rate was 40.17%, down 1.91% from the previous month. The production capacity was 241,680 tons, and the capacity release rate was 44.91%, down 2.5% from the previous month. The total monthly production amounted to 193,360 tons, a month-on-month decrease of 6,470 tons, a decrease of 3.24%, and a year-on-year increase of 46,950 tons, an increase of 32.07%. In the dry season in March, the start of the southern plant is still at a low level, and the electricity price has not been finalized for a long time. The factory in the Nujiang area of Yunnan was basically fully opened in March of the previous year, but it still started at zero by the end of March this year.