AM Insight: Chinese silicon metal powder enterprises in dilemma under sluggish upstream and downstream markets
2012-10-23 09:43:47 [Print]
BEIJING (Asian Metal) 23 Oct 12 – Silicon metal powder is grinding silicon metal lump. It is widely used in a variety of industries, such as refractory materials industry, powder metallurgy industry, organosilicone industry, polysilicon industry and so on. In silicon chain, silicon metal powder is both influenced by upstream silicon metal lump market and downstream polysilicon, organosilicone and refractory materials markets.
As the dry season in South China is approaching, silicon metal smelters intend to hold offers firm and some smelters even begin to hold back from selling materials. It is expected that the silicon metal prices will stable in the near future. Furthermore, with the approaching dry season, the operating rate for silicon metal smelters will keep at low level or decrease. It is hard for silicon metal powder buyers to purchase materials at favorable prices.
With the new energy is recognized, the global solar market developed rapidly. The polysilicon plants were built continuously in China from 2005. Furthermore, the silicon metal powder market became larger. But owing to the European debt crisis, global solar market began to move down, and Chinese polysilicon market went into decline from 2008. The demand for silicon metal powder reduced accordingly, and the operating rate for silicon metal powder factories decreased gradually.
As the upstream and downstream markets are unfavorable, the silicon metal powder market runs with difficulties in China.
The prices for solar grade 6N polysilicon move down to around RMB130-140/kg (USD20-21/kg) and the prices for trichlorosilane decrease to around RMB4,000-4,500/t (USD634-714/t) at present. With the decreasing prices, the polysilicon and trichlorosilane factories have to reduce or stop production. The demand for silicon metal powder remains at low level. Due to the weak demand, the silicon metal powder prices decline.
According to the sources, there are around 45 polysilicon plants in China. However, under the sluggish solar market, the consumptions from the silicon wafer and solar cell for polysilicon decreases. Currently, only a few large-sized polysilicon plants keep on production and few of them are in full capacity. Furthermore, there are nearly 50 trichlorosilane factories in China, but only 10 of them are on production at most. Therefore, as the polysilicon and trichlorosilane upstream market, the silicon metal powder market runs with difficulties.
The major downstream markets for silicon metal powder are trichlorosilane and polysilicon markets. But owing to the weak demand, the trading volume is small in the spot market. The silicon metal powder enterprises have to pay attention on the by-products, like fine silicon metal powder. The fine powder of silicon metal is mainly used by refractory materials. Owing to the sluggish global economic, most steel mills reduce output or stop production and the refractory material market runs slowly. Moreover, the demand for fine silicon metal powder decreases accordingly; while owing to the low operating rate for silicon metal powder factories, the supply for fine silicon metal powder is relatively tight in the spot market. The prices for fine silicon metal keep firm and even move up slightly.
The fine silicon metal powder is the by-product, and although the demand is stable and the prices are firm, it is unlikely to push the silicon metal powder market move up. The downstream markets remain dull under the unfavorable global economy, and the demand for silicon metal powder will keep at low level. Meanwhile, the silicon metal market is dull, too. The Chinese silicon metal powder market is hard to recover in a short time.
As the dry season in South China is approaching, silicon metal smelters intend to hold offers firm and some smelters even begin to hold back from selling materials. It is expected that the silicon metal prices will stable in the near future. Furthermore, with the approaching dry season, the operating rate for silicon metal smelters will keep at low level or decrease. It is hard for silicon metal powder buyers to purchase materials at favorable prices.
With the new energy is recognized, the global solar market developed rapidly. The polysilicon plants were built continuously in China from 2005. Furthermore, the silicon metal powder market became larger. But owing to the European debt crisis, global solar market began to move down, and Chinese polysilicon market went into decline from 2008. The demand for silicon metal powder reduced accordingly, and the operating rate for silicon metal powder factories decreased gradually.
As the upstream and downstream markets are unfavorable, the silicon metal powder market runs with difficulties in China.
The prices for solar grade 6N polysilicon move down to around RMB130-140/kg (USD20-21/kg) and the prices for trichlorosilane decrease to around RMB4,000-4,500/t (USD634-714/t) at present. With the decreasing prices, the polysilicon and trichlorosilane factories have to reduce or stop production. The demand for silicon metal powder remains at low level. Due to the weak demand, the silicon metal powder prices decline.
According to the sources, there are around 45 polysilicon plants in China. However, under the sluggish solar market, the consumptions from the silicon wafer and solar cell for polysilicon decreases. Currently, only a few large-sized polysilicon plants keep on production and few of them are in full capacity. Furthermore, there are nearly 50 trichlorosilane factories in China, but only 10 of them are on production at most. Therefore, as the polysilicon and trichlorosilane upstream market, the silicon metal powder market runs with difficulties.
The major downstream markets for silicon metal powder are trichlorosilane and polysilicon markets. But owing to the weak demand, the trading volume is small in the spot market. The silicon metal powder enterprises have to pay attention on the by-products, like fine silicon metal powder. The fine powder of silicon metal is mainly used by refractory materials. Owing to the sluggish global economic, most steel mills reduce output or stop production and the refractory material market runs slowly. Moreover, the demand for fine silicon metal powder decreases accordingly; while owing to the low operating rate for silicon metal powder factories, the supply for fine silicon metal powder is relatively tight in the spot market. The prices for fine silicon metal keep firm and even move up slightly.
The fine silicon metal powder is the by-product, and although the demand is stable and the prices are firm, it is unlikely to push the silicon metal powder market move up. The downstream markets remain dull under the unfavorable global economy, and the demand for silicon metal powder will keep at low level. Meanwhile, the silicon metal market is dull, too. The Chinese silicon metal powder market is hard to recover in a short time.
Silicon Metal 3-3-03 P 30ppm max Delivered China
Unit:RMB/mt
China silicon metal producers' inventory to production ratio statistics by province by month
Unit: %
