Silicon Industry Association: Industrial silicon spot prices continue to decline, trading atmosphere remains subdued.

The silicon industry branch issued a document stating that this week, the spot price of industrial silicon has fallen. In the past week (January 9 to January 15, 2025), the closing price of the main contract fell from 10,510 yuan/ton to 10,725 yuan/ton, with an increase of 2.05%. The national comprehensive price is 11,142 yuan/ton, a decrease of 368 yuan/ton. In terms of different specifications, 553 is 10,756 yuan/ton, 441 is 11,413 yuan/ton, and 421 is 11,652 yuan/ton. The comprehensive prices in Xinjiang, Yunnan, Fujian, and Sichuan are 10,852 yuan/ton, 11,598 yuan/ton, 15,640 yuan/ton, and 11,900 yuan/ton, respectively. FOB prices are stable. This week, the spot market for industrial silicon continued to decline, mainly due to low prices and weak downstream demand, resulting in sluggish transactions and low procurement willingness from downstream users. In addition, futures and spot quotations are lower than spot manufacturers, putting pressure on spot prices. On the supply side, production in the Northwest region remains stable, while production in the Southwest region continues to decrease. Manufacturers in Sichuan, Yunnan, and Fujian are also reducing production, leading to a slight decrease in overall production. In terms of demand, the domestic monomer factory in the organosilicon sector has no long-term maintenance plans, with high operating loads and sufficient supply, leading to a slight increase in industrial silicon demand. The operating rate of polycrystalline silicon has decreased, leading to reduced demand for industrial silicon. Aluminum alloy plants are operating steadily and procuring industrial silicon as needed. In terms of prices, supply of organosilicon is more sufficient, with monomer factories offering discounts and lowering prices slightly. The price increase in polycrystalline silicon is mainly due to a decrease in production output and the expectation of enterprises consciously reducing shipments. Currently, with weakened downstream demand and insufficient momentum for price increases, the market sentiment remains pessimistic. However, considering production costs, the possibility of further price reductions by industrial silicon manufacturers is low. In the short term, spot prices are expected to fluctuate around the bottom.