Silicon Industry Association: This week, the industrial silicon market presents a trend of "period of strength and stability" with weak demand leading to market fluctuations.

On January 16, the Silicon Industry Subassociation issued a statement, stating that this week the industrial silicon market is showing a differentiation trend of "periodic strength and current stability". The sentiment in the futures market improved, with the main contract 2605 closing at 8755 yuan/ton, up from 8535 yuan/ton on January 8, with a cumulative increase of 220 yuan/ton. This week, the industrial silicon supply side continued to show a contraction trend. Despite some repair in the futures market, the spot market remains weak, coupled with high production costs, which have suppressed the enthusiasm of enterprises for production. Currently, companies in Gansu, Ningxia, and other places are facing a situation of losses, and even companies in traditional low-cost areas such as Xinjiang are also facing losses. Some companies are now arranging production cuts, while the difficulties in maintaining production in high-cost areas such as Sichuan and Yunnan have further increased. Overall, the current industrial silicon market is still dominated by weak demand logic. Although the supply is gradually shrinking, due to reduced production or the offseason in the three major downstream consumption areas, purchasing demand is delayed in being released, and social inventories are expected to continue to accumulate, facing significant resistance to price increases. In the short term, the market is expected to continue to consolidate in a volatile manner, and attention should be paid to the substantive impact of cost support and changes in downstream production on the supply-demand structure.