Silicon Industry Branch: Market Sentiment Largely Wait-and-See, Overall Industrial Silicon Prices Stable.

On December 25th, the Silicon Industry Branch issued a statement stating that this week the spot price of industrial silicon remained stable. In the past week (December 19th to December 25th, 2024), the closing price of the main contract fluctuated from 11,315 yuan/ton to 11,585 yuan/ton, an increase of 2.39%. The FOB price fell by 30-40 US dollars/ton. This week, the industrial silicon spot market was cautious, with prices overall stable and trading volume relatively low. Downstream procurement demand did not show a significant increase and purchases were cautious. On the supply side, production in the southwest region decreased during the dry season, while the northwest region had reduced production earlier with no significant plans for large-scale resumption. Although two new production capacities were added, overall supply remained tight. On the demand side, in terms of silicone, the main single plant in Shandong resumed production, increasing the supply capacity of silicone and the demand for industrial silicon; polysilicon plants had stable production recently and purchased industrial silicon as needed; aluminum alloy plants maintained stable demand for industrial silicon. In terms of prices, supported by pre-sale orders, overall inventory of silicone single plants was low, and manufacturers collectively supported prices, resulting in a slight price increase; aluminum alloy prices remained stable; polysilicon prices rose slightly, but overall trading volume was low. According to customs data, industrial silicon exports in November 2024 were 52,900 tons, a decrease of 18.74% month-on-month but an increase of 11.13% year-on-year. In November, the international and domestic markets were relatively stable, with downstream purchases mainly on demand, and the previous inventory replenishment phase ending, leading to a decrease in demand for industrial silicon. In terms of country and region, exports to Japan were 11,000 tons, an increase of 30.59% month-on-month; exports to South Korea were 5,500 tons, a decrease of 5.17% month-on-month; exports to Europe were 8,300 tons, a decrease of 38.52% month-on-month; exports to Asia excluding Japan and South Korea were 24,000 tons, a decrease of 28.36% month-on-month. There are signs of improvement in the supply and demand relationship, but supply still exceeds demand. With accumulated inventory pressure and insufficient downstream demand, it will be difficult for industrial silicon spot prices to rise.