Silicon Industry Association: Industrial silicon spot prices remain stable this week, with short-term bottom oscillations as the main trend.

The silicon industry branch issued a document stating that the spot price of industrial silicon remained stable this week. In the past week (January 16th to January 22nd, 2025), the closing price of the main contract fluctuated from 10,685 yuan/ton to 10,765 yuan/ton, with an increase of 0.75%. The FOB price rose slightly by $10/ton. Recently, there has been less trading in the market, mainly focusing on low-priced sources of goods, making inventory turnover difficult. However, the current market price is below the cost line of some manufacturers, leading to a low willingness to reduce prices for shipments by manufacturers. Additionally, with weak demand, the support for upward price movements is insufficient, and spot prices are expected to remain at the bottom in the short term. The spot price of industrial silicon remained stable this week mainly due to the approaching Spring Festival holiday. Downstream stocking before the holiday has ended, making it difficult for industrial silicon producers to ship goods, resulting in a lack of market transactions. FOB prices have experienced minor fluctuations due to exchange rate influences. On the supply side, the total number of hot furnaces in production in the southern region does not exceed 30, further reducing production output. Some manufacturers in the northern region have shut down or reduced production, but with new production capacity being put into operation, the changes in production output are minimal. Overall, there is a slight downward trend in production output for January. On the demand side, over 70% of silicone monomer factories are operating, with limited maintenance plans, resulting in continued production increases and a slight increase in demand for industrial silicon; polysilicon factories are producing as planned, with overall production output trending downward, leading to reduced demand for industrial silicon; aluminum alloy factories have stable production and procure according to demand. In terms of prices, silicone monomer factories have a strong willingness to accept orders and ship goods, resulting in a downward shift in prices, with downstream buyers seeking to replenish their inventories at lower prices, followed by a weakening trading atmosphere and stable prices; polysilicon prices remain stable with limited signing transactions. According to customs data, industrial silicon exports in December 2024 reached 57,600 tons, an increase of 8.88% month-on-month and 11.63% year-on-year. Approaching the Spring Festival holiday in December, overseas purchases increased demand for industrial silicon, leading to a slight rebound in demand. In terms of countries and regions, exports to Japan reached 12,700 tons, an increase of 15.45% month-on-month; exports to South Korea reached 5,500 tons, an increase of 0.31% month-on-month; exports to Europe reached 12,400 tons, an increase of 49.40% month-on-month; exports to other Asian regions excluding Japan and South Korea reached 23,800 tons, a decrease of 0.83% month-on-month.