Recently, the quotation of metal silicon has remained stable, with a strong willingness to stand up in the Southwest region. At present, the price of 441 # in Kunming is 14000-14100 yuan/ton, while the price in Sichuan is 13500-13700 yuan/ton.

On the supply side, the production in the main production areas continued to increase last week.

In the Sichuan region,

Affected by the Universiade, in order to ensure the electricity supply and air quality in Chengdu during the Universiade, some silicon factories in the surrounding areas of Chengdu have requested to suspend production. It is understood that last week, all five industrial silicon furnaces in Yingjing County of Ya’an were shut down. At zero o’clock on the 26th, a total of 10 silicon plants in Jinkouhe District, Ebian County and Baoxing County of Ya’an will be shut down. The supply in Sichuan has decreased.

In the Yunnan region,

The construction is at a high level, and most manufacturers have resumed production. Currently, the start-up rate has exceeded 70%, and there is limited room for growth in the later stage.

Xinjiang region,

In the early stage, the resumption of production of furnaces after shutdown was promoted, and there was still room for further growth of output, which also led to an increase in low price transactions in the northwest market.

In terms of demand, the overall market demand remains unchanged. The organic silicon DMC market continues to decline, with high inventory. A single factory in Shandong and a leading large factory have lowered their prices, while some single factories have followed suit. The price of polycrystalline silicon remains stable, and silicon material manufacturers continue to operate normally. However, inventory continues to digest due to the improvement in downstream demand, and prices will remain low in the near future. The process of continuing to rise in the short term will not be too long. The aluminum alloy market remained stable, and the operating rate of aluminum alloys remained flat month on month.

Future Market Forecast

Sichuan and Yunnan have limited production growth and stable quotations, while Xinjiang is actively resuming production, with more low-priced transactions in the market, suppressing prices in the south. Overall, there has been no significant change in the fundamentals of metallic silicon, and it is expected that the price of metallic silicon will operate smoothly in the short term.