Silicon Industry Branch: Industrial silicon supply and demand have not improved, and the short term is still dominated by low shocks

The Zhitong Finance App learned that the Silicon Industry Branch published an article stating that the overall spot price of industrial silicon has remained stable this week. Overall, at the end of the flood season in the southwest region, costs have moved up to a certain extent, which supports spot prices; however, the fundamentals of supply and demand have not improved, and the pattern of relaxed supply has been maintained. Although the supply side is expected to cut production, downstream demand has not improved significantly; at the same time, according to Guangji data, today's warehouse volume is 293,500 tons, with little change, and inventory consumption is under some pressure. As warehouse receipts are being cancelled centrally in November, prices are still under pressure. In the short term, industrial silicon prices are still mainly fluctuating at low levels.

Data shows that in the past week (October 10-16, 2024), the main contract 2411 closed at 9540 yuan/ton and fluctuated to 9720 yuan/ton, an increase of 1.89%. The national comprehensive price and the comprehensive price of each brand are stable, and FOB prices are stable.

Prices in the industrial silicon market have been stable this week. There is mostly downstream wait-and-see demand. Most of the purchases are being maintained, and market turnover is low. On the supply side, demand for raw materials from industrial silicon manufacturers in the southwest region is weakening, electricity prices are gradually rising, and most companies have plans to cut production later; production is expected to increase due to normal production in the northern region, combined with the introduction of additional production capacity and the resumption of production and maintenance furnaces in the early stages. On the demand side, in terms of silicone, due to the maintenance of local single devices in Zhejiang and Hebei, the supply of DMC declined slightly, and demand for industrial silicon decreased slightly; the overall production plans of polysilicon companies changed little, and industrial silicon was purchased as needed; aluminum alloy companies had stable production, and the operating rate increased slightly, and industrial silicon was purchased as needed. In terms of price, silicone prices have been lowered slightly, and downstream stocks have begun to be replenished in small quantities at low prices, and the market transaction atmosphere has improved; polysilicon prices have stabilized, and there are few new market orders.