Industrial Silicon Market Weakly Fluctuates
On March 27, the domestic industrial silicon market maintained a weak fluctuation pattern, with no obvious changes in supply and demand. The mainstream quotation of spot 421# metal silicon was 9700–10000 RMB/ton, and the closing price of the main futures contract (SI2605) on the previous trading day was 8735 RMB/ton, showing a pattern of spot-futures divergence. On the supply side, the operating rate of industrial silicon enterprises in the north and south regions is basically stable, the production resumption rhythm of large factories is slow, and there is no large-scale production increase or reduction plan, so the overall supply is stable.
On the demand side, the downstream demand is still weak: the demand for organic silicon is flat, and most monomer factories mainly use self-supplied industrial silicon; the polysilicon enterprises continue to reduce production and load, and the procurement volume of industrial silicon is significantly reduced, with all purchases based on rigid demand. The core constraint of the industrial silicon market is still the high inventory and weak demand. Market feedback shows that some small and medium-sized industrial silicon enterprises have been under pressure due to insufficient orders, and even suspended production temporarily. Industry insiders predict that in the short term, the industrial silicon market will continue to operate weakly under the interweaving of long and short factors, and the price will not have obvious upward momentum until the downstream demand recovers.
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