Outlook of the Silicon Metal Market in 2021

Outlook of the silicon metal market in 2021

1.Cost Aspect

During the implementation of the national power policy reform, although the electricity prices in many regions may have a crisis of upward adjustment, the production costs of silicon plants will directly rise, but they are basically stable due to local policies and support for industrial development. Next year, the overall electricity prices in all regions will only be fine-tuned; silica it may become the biggest problem for some factories in Xinjiang. Abundant reserves does not mean that they can be used normally, but the price is basically unchanged. It is only the tight supply that reduces the production of silicon plants, and the abundant supply of factories increases the operating rate; the supply of products such as petroleum coke and silicon coal is normal. Affected by the macroeconomic and policy adjustments, prices may fluctuate at any time, and the cost may change several hundred RMB; the current supply and demand of electrodes are stable, and the price is on an upward trend. From this point of view, the production cost of silicon metal will not change too much of course any factors are affected, and it depends on how relevant policies are implemented in 2021.

2.Supply and Demand

At present, the silicon metal plant does not have too many expansion projects, and the newly commissioned plant will switch to other alloy products or resume production after stopping production for several years after rectification. Due to my country's severe overcapacity of silicon metal production capacity, the state has restricted the approval of new projects, coupled with many issues such as environmental protection, most companies planning to devote themselves to the silicon metal industry do not plan to build submerged arc furnaces. There are many downstream organic silicon and polysilicon expansion projects, which will also be put into production in 2021 and 2022, and the consumption of metal silicon will increase significantly. In order to meet the downstream expansion demand for silicon metal, factories in production or factories that can be put into production will gradually resume to maintain high levels of operation. It is expected that the production of silicon metal in 2021 may increase by 100,000 to 150,000 tons compared with 2020.

3.Price Trend

The production cost of silicon metal has no possibility of falling, but an upward trend. Of course, the market transaction price trend is more affected by supply and demand. Domestic downstream demand has increased and exports have gradually recovered. In order to meet the rising demand for downstream consumption, metal silicon factories will maintain a high level of operation, and the necessary conditions for maintaining a high level of operation are profitable. It is expected that in 2021, the price of silicon metal will no longer be lower than 10,000 yuan/ton, and the price of silicon may remain fluctuating between 1,2000-16,000 yuan/ton.

Anyang Huatuo Metallurgy is one company who focus on silicon metal 553,441,1101, etc various grade for more than 10 years, pay more attention on the silicon metal price and market situation, will update the newest changes from time to time, if any interests welcome for consult.