According to the analysis of the Business Society’s market monitoring system, on July 31st, the reference price for the domestic silicon metal # 441 market was 12100 yuan/ton, a decrease of 1110 yuan/ton or 8.40% from July 1st (the market price for silicon metal # 441 was 13210 yuan/ton).

In July, the domestic silicon metal market experienced consecutive declines. In the first ten days, the silicon metal market entered a period of abundant water, with overall production at a high level and increasing market supply. Downstream demand digestion was average, and the weak supply and demand situation continued. In the latter half of the month, although there were some adjustments in on-site construction, some silicon companies in certain regions were unable to cope with the supply pressure and lowered their equipment operation levels. However, the overall supply level in the field remained high. Among them, the metal silicon construction in Yunnan was still close to full load operation, and downstream sentiment towards the continuous decline in the market was strong. The demand side suppressed the market trend, and the metal silicon market continued to decline.

On July 31st, the market price of metal silicon 421 # in the East China region of China was adjusted downwards. The reference price for 421 # in the East China region is around 12200~12400 yuan/ton, with a daily decrease of about 100 yuan/ton. The market price of metal silicon oxygen 553 # in the domestic Xinjiang region has fallen. The reference market price for oxygen 553 # in Xinjiang is around 11200-11400 yuan/ton, with a daily decrease of about 50 yuan/ton. The domestic market price of silicon metal 421 in Tianjin Port area has experienced a narrow decline, while the reference market price of 441 in Tianjin area is around 12100-12500 yuan/ton, with a daily decrease of about 50 yuan/ton.

In terms of construction: Currently, the overall construction rate of the metal silicon market in Yunnan and Sichuan regions has not fluctuated much, and the construction rate is still close to full load operation. The construction of metal silicon in Xinjiang has been slightly reduced, and some large factories have stopped their metal silicon equipment for maintenance. Currently, construction is starting around the eighth floor.

In terms of inventory, in July, the overall inventory of metallic silicon in Xinjiang, Yunnan, and Sichuan regions in China was in a state of slight destocking. At present, the overall inventory supply is still under pressure.

Downstream: In July, the downstream market for metal silicon and organic silicon DMC showed an overall weak downward trend. At the beginning of the month, the market price for organic silicon DMC was based on 13560 yuan/ton. At the end of the month, the market price for organic silicon DMC fell to around 13200 yuan/ton, a decrease of 2.65% for the month. At present, the overall trading atmosphere in the organic silicon DMC market is mild, and the overall willingness of factories to ship is strong. Some downstream suppliers are restocking at low prices, and it is expected that the organic silicon DMC market will mainly adjust and operate in a narrow range in the short term.

Market analysis in the future

At present, the trading atmosphere in the metal silicon market is relatively quiet, with a strong wait-and-see sentiment within the market. The downstream demand side provides insufficient support to the market. The metal silicon data analyst from Shengyi Society believes that in the short term, the domestic metal silicon market will mainly adjust and operate in multiple intervals, and the specific trend needs to pay more attention to changes in supply and demand news.