Silicon Industry Sub Association: Spot and futures prices both decline, industrial silicon market operates weakly this week.

On April 3rd, the Silicon Industry Sub-Association issued a statement saying that this week the industrial silicon market continued to show a weak trend. Futures prices fluctuated downward, spot market prices for various grades decreased slightly, and overall transactions were mainly based on just-in-time demand. In terms of futures, as of the close of April 2nd, the main 2605 contract closed at 8300 yuan/ton, a decrease of 325 yuan/ton from the previous Friday (March 27) of 8625 yuan/ton, representing a weekly decline of about 3.77%. Market sentiment was bearish during the week, with volatility in the market and a decrease in open interest. Spot market prices decreased slightly, with AnTaiKe's price statistics on April 2nd showing a national industrial silicon comprehensive price of 8958 yuan/ton, a decrease of 52 yuan/ton from the previous week. In terms of specifications, the price of 553# was 8565 yuan/ton, a decrease of 49 yuan/ton; the price of 421# was 9487 yuan/ton, a decrease of 52 yuan/ton; the price of 441# was 9169 yuan/ton, holding steady during the week. In terms of regional prices, comprehensive prices in Xinjiang fell by 59 yuan/ton to 8662 yuan/ton, while prices in Yunnan and Sichuan were 9896 yuan/ton and 10000 yuan/ton respectively, holding steady in both regions. The FOB export prices remained unchanged from the previous week. On the supply side, the overall operating rate of the industry showed some differentiation this week. The operating rate in Xinjiang remained high, with production accounting for over 67% of the national total, making it still the main supply region in the current market. Due to high electricity prices during the dry season and the continuous decline in futures prices, some enterprises in Yunnan and Sichuan delayed their production plans, resulting in a low overall operating rate. Inner Mongolia and Gansu both saw a slight decrease in their operating rates for different reasons: Inner Mongolia enterprises mostly adopt a supporting production mode, and the reduction in polycrystalline silicon production has slowed down the corresponding industrial silicon production pace; while in Gansu, the substantial increase in electricity prices has forced enterprises to reduce production in order to control losses. The performance of the demand side this week continued to be mixed, but overall weak. In terms of polycrystalline silicon, the industry still focuses on destocking, with low operating loads and a just-in-time purchasing rhythm for industrial silicon, and no increase in stocking intentions. For organosilicon, downstream receiving sentiment remained weak, with some companies starting to slightly reduce inventories, becoming more cautious in their purchases of industrial silicon. DMC prices remained stable, with low inventory levels in enterprises but limited demand support. In aluminum alloys, benefiting from the traditional peak season, operating rates remained high, and some enterprises increased procurement inquiries slightly compared to the previous week, but due to limited increases in end-ordered amounts, actual transaction volumes did not significantly increase, thus having a limited effect on spot prices. Overall, the current industrial silicon market is still in a situation of high inventory and weak demand pressure from above, and high cost support from below. On the supply side, production reduction in the Southwest during the dry season, but high operating rates in Xinjiang, with slight decreases in operating rates in Inner Mongolia, Gansu, and other areas, overall supply remains relatively loose. On the demand side, the pressure of high inventory in the polycrystalline silicon industry has not been relieved, the organosilicon industry continues to reduce production, and although the aluminum alloy industry is in the peak season, the increase in demand is limited, making it difficult for the three major downstream sectors to provide effective upward drive. It is expected that the market will maintain a weak and volatile trend in the short term. With production costs supported in Xinjiang, there is limited downward price movement, but high inventory and weak demand will suppress any rebound. In the future, attention will be focused on the production and shipment pace of major factories in Xinjiang, the progress of production resumption during the abundant water period in the Southwest, and the destocking situation in the downstream polycrystalline silicon and organosilicon sectors.