Metal silicon China market forecast in the second half of the year

Sichuan and Yunnan industrial silicon enterprises to determine the resumption of production, domestic industrial silicon supply or will increase, but the market downturn, the pace of resumption of production may not be as good as in previous years. From June to July, Sichuan and Yunnan industrial silicon production accelerated release, electricity price reduction led to the rapid repair of local silicon plant profit level, Sichuan and Yunnan enterprise operating rate increased month on month, but there may be a decline. Under the current market, silicon plants not only need to consider the profit level of the production node, but also need to consider the impact of the continued decline in silicon prices after the resumption of production on profits, and the resumption plan may be more cautious. In August, the probability of industrial silicon production will continue to increase, but the increase will narrow. From May to August, the domestic industrial silicon supply continued to increase, due to the resumption of production in Sichuan and Yunnan silicon plants. Need to pay attention to several points: First, the operating rate of this year's wet period or relatively low, operating rate seasonal or weakened. Second, from the perspective of cost and profit, the time and scale of Sichuan's resumption of production in this year's wet season may be better than Yunnan. Third, we need to pay close attention to the hydropower situation in Yunnan and Sichuan. The current precipitation and reservoir water level in Yunnan are relatively low, and the possibility of high temperature and drought in Sichuan cannot be ruled out.

In summary, Hainan West Asia Import and Export Group analysis of the current industrial silicon disk price slightly higher than the cost line, if taking into account the silicon factory profit difference is smaller, it is expected that the price below the space is not large. In the case of no substantial inventory reduction, the sharp rebound of industrial silicon prices lacks order volume to support, and then we need to pay close attention to the price of electricity in Sichuan and Yunnan during the wet season and the local resumption of production progress. For more information about silicon metal, please pay attention to Hainan West Asia Import and Export Group.