Silicon Industry Branch: Prices continue to rise during the recovery of sentiment in the industrial silicon market

The Zhitong Finance App learned that on July 4, the Silicon Industry Branch published an article stating that recently, under the combined effects of rising industrial silicon markets, production cuts from major manufacturers in the north, and increased demand for industrial silicon from polycrystalline silicon, sentiment in the industrial silicon spot market has picked up, and spot prices have risen.

Specifically: First, industrial silicon futures have risen significantly recently, starting to rise since June 23, and have been hovering around 8,000 yuan/ton in recent days; second, the resumption of production by major manufacturers in the north fell short of expectations, and production cuts have begun, and supply pressure has eased to a certain extent. Although the southwest region has entered a period of abundant water, electricity prices have been lowered, and some manufacturers have begun to resume production, the current market price is not ideal. The operating rate is far lower than the same period in previous years, and the increase in supply is limited; third, some production lines of major polycrystalline silicon manufacturers have plans to resume production, and overall production increases are expected to increase production. Demand for industrial silicon is increasing.

Looking at the inventory side, since April of this year, inventories have continued to decline slightly, and there is a basic balance between supply and demand in the market. According to data from the Guangji Institute, as of July 3, 2025, industrial silicon warehouse inventory was 259,300 tons, a decrease of 54,200 tons within a month, and the desire to receive downstream goods increased markedly.

Judging from the fundamentals of supply and demand, there is still an increase on the supply side, but with low construction starts in the southwest region and production cuts, the increase is limited; the resumption of polysilicon production on the demand side brought about a slight increase. Silicone construction started high, production remained high, and demand for aluminum alloys was stable, and procurement was just needed. It is expected that there is still a basic balance between supply and demand.

Factors' production reduction plans and expectations for polycrystalline silicon plants to resume production are boosting market sentiment. Continued attention should be paid to changes in production and downstream demand in large manufacturers. It is expected that there is room for a slight increase in prices.