The silicon metal market in March

The Review of Silicon Metal Market

In March, the market price of silicon metal rose first and then fell, showing a “parabolic” trend. In the first half of the month, due to the increase in cost and the small increase in the operating rate, the prices continued the rise in February, and continued to rise by more than 1,000rmb per day. In the second half of the month, due to the impact of the epidemic, the operating rate of end enterprises decreased and overseas demand was poor, which made the bearers more bearish and actively sold. The buyer’s order is released slowly. Industry insiders have high expectations for the upcoming flood season and the new production capacity of a large factory, and the expectation of oversupply in the market still dominates market behavior.

Metallurgical grade silicon market

This month, the metallurgical-grade silicon metal market has changed significantly. In the first half of the month, some companies could suddenly raise prices due to orders received, which led to bullish sentiment and buyers actively placed orders. However, the year-on-year increase in output and consumption was different. The accumulation of market inventory and the outbreak of the epidemic led to weaker demand, low purchasing enthusiasm, spread of bearish sentiment, sparse transaction volume, and continuous decline in the transaction price of metal silicon. Some suppliers with a heavy bearish sentiment took the initiative to sell their goods for cash, and the market price gap was large. For 553# , due to the rising cost of raw materials, the profit of the silicon factory was lower than that before the Spring Festival, and the enthusiasm for starting construction declined;

Chemical grade silicon market

The prices of chemical-grade silicon metal rose  than that of last month, in line with the metallurgical-grade silicon metal. but because of the downstream silicone plant and individual polycrystalline silicon plant operation rate is relatively stable high, strong consumption capacity, and some areas of chemical grade silicon metal output reduced. Its supply-demand relationship is more stable than that of low-grade silicon and aluminum markets.

The Exporting Market of Silicon Metal

In February, the total export volume of silicon metal products was 44,286 tons, a decrease of 19,295 tons, 30.35% from the previous month, and a decrease of 6,851 tons, 13.40% year-on-year. From January to February, the total export was 107,867 tons, a year-on-year decrease of 4,381 tons, 3.90%. In March, affected by the rising domestic market, some overseas orders were released, but the decline intensified in the second half of the year. The release of overseas orders was relatively small. The export transaction of metal silicon was still not optimistic.

The Operation and Capacity

In March, 298 metal-silicon submerged arc furnaces were opened, with a decrease of 5 units from the previous month and an increase of 55 units from the same period last year. The operating rate was 51.11%, a decrease of 0.42% from the previous month. The monthly output is about 252,400 tons, an increase of 8,400 tons or 3.44% month-on-month, and a year-on-year increase of 59,040 tons, an increase of 30.53%. The total output from January to March was 762,500 tons, an increase of 157,170 tons or 25.96% year-on-year. In addition, in March 97, 40 silicon factories were opened, with an output of about 25,650 tons. Therefore, a total of 338 submerged arc furnaces have been opened nationwide, with a total monthly output of about 278,050 tons.

In April, individual factories in Sichuan and Yunnan will continue to increase production, and individual factories in Xinjiang that have been reduced by power station maintenance and environmental inspections will also resume work in the latter half of the year. In some areas, the electricity price is high and the transaction price of low-grade silicon metal is low. After the cost of silicon factories has increased, there is no excessive profit, and the production enthusiasm has decreased. It is expected that the operating rate in April will remain at 53-55%, and the output may remain at around 280,000 tons.

The Market Prediction For April 2022

After the continuous decline in the second half of March, the market transaction price has gradually approached the cost, and the enthusiasm of factories planning to resume production has declined. The organosilicon and polysilicon factories have stable production and strong consumption capacity. After some new projects are put into operation one after another, the consumption will increase, but the consumption of the domestic aluminum market may still be at a low level in April. It is expected that the market price of silicon metal will show a weak and stable operation in April.