According to the analysis of the Business Society’s market monitoring system, on August 12th, the reference price for the domestic silicon metal # 441 market was 12020 yuan/ton. Compared to August 1st (the market price for silicon metal # 441 was 12100 yuan/ton), the price decreased by 80 yuan/ton, a decrease of 0.66%.

According to the market analysis system of Shengyi Society, the domestic silicon metal market remained stable and consolidated in the first week of August. After a continuous decline in the previous market, the market finally stopped falling and stabilized in August. However, the market situation has not been calm for several days. Due to poor supply and demand transmission in the market, the metal silicon market has once again fallen, and the prices of metal silicon in many regions have been lowered by 50-100 yuan/ton. As of August 12th, the market price reference for metal silicon 441 is around 11800-12450 yuan/ton.

In terms of inventory: Currently, the social inventory of silicon metal in China is about 481000 tons, an increase of 5000 tons from the beginning of the month. The overall destocking performance of silicon metal is average, and the inventory supply is loose.

Supply side: Currently, the supply side of silicon metal is still loose, and the supply side is under pressure, providing limited support to the silicon metal market.

In terms of production: In July 2024, the silicon metal market entered a period of high demand, and the on-site production gradually increased. In July, the domestic silicon metal production was about 487000 tons. In August, due to downstream demand constraints, some metal silicon factories started operating at a reduced rate. The overall production of metal silicon is expected to decrease compared to July, but the overall capacity utilization rate is still high.

Downstream: Recently, the downstream organic silicon DMC market for metallic silicon has experienced a narrow rebound. Currently, the organic silicon DMC market mainly digests early-stage raw materials, and the demand for metallic silicon has not increased much. It remains to be seen whether the future market can bring a slight increase in demand to the silicon metal market.

The overall operating rate of the downstream polycrystalline silicon market has slightly decreased, and the demand for metallic silicon has also slightly decreased. The downstream metallurgical market is operating at a low level, and there has been no significant boost in demand for silicon metal, with a focus on on-demand procurement. Therefore, since August, the overall demand performance of the silicon metal market has been poor, providing insufficient market support for silicon metal.

Market analysis in the future

At present, there is a strong sentiment of observation in the metal silicon field, and the mentality of industry players is cautious. The transmission between supply and demand is still relatively slow. The metal silicon data analyst from Shengyi Society believes that in the short term, the domestic metal silicon market is mainly characterized by narrow adjustments, and the specific trend still needs to pay more attention to changes in supply and demand news.