Social inventory in Xinjiang continues to decline, and social inventory of silicon metal in major regions decreased MoM [SMM Silicon Inventory]

[Silicon metal buying-selling game intensifies; focus on changes in supply-side operating rates]: The most-traded silicon metal 2609 futures contract has been hovering below 8,500 yuan/mt for a month. Enterprise pressure has increased, and a small number of silicon enterprises plan to undergo rotational maintenance or halt production. Marginal supply cuts have emerged, but the impact is limited and not enough to reverse the current pessimistic market sentiment. The intensity of the silicon metal buying-selling game has increased, but prices remain on the low side of the range. On the supply side, Sichuan-Yunnan silicon enterprises have just resumed production for a short time during the rainy season, so any production halts are sporadic. Recent supply reductions have mainly come from northern production regions. Watch for changes in supply-side operating rates going forward.

[Secondary Aluminum and Aluminum Scrap Weekly Review: Cost Support and Weak Demand in a Tug-of-War; Short-Term ADC12 Prices Maintain Sideways Movement] This week, ADC12 prices continued to move sideways. As of today, the SMM ADC12 quotation was adjusted down by 100 yuan/mt from last Thursday to 24,000 yuan/mt. During the week, cost support from aluminum scrap remained, and enterprises showed little willingness to voluntarily cut prices. However, constrained by weak off-season demand, prices lacked upward momentum. The overall market exhibited a tug-of-war pattern characterized by "selling at stable prices and transacting based on orders.

[SMM Silicone Weekly Review: Transaction Prices of Silicone Products Hit New Stage Lows Again, While Tug-of-War Between Upstream and Downstream Persists] DMC prices continued to weaken significantly this week, with the transaction range falling to 11,300-11,500 yuan/mt, down 850 yuan/mt WoW. Demand side, with no improvement in end-use demand, market transaction prices kept declining, making mid- and downstream clients more cautious in purchasing. Currently, although raw material inventories at some clients have fallen to low levels, they remain on the sidelines, showing little willingness for concentrated stockpiling, and maintain small, rigid-demand purchases while pushing for lower prices, waiting for market prices to fall further to their psychological expectations before buying the dip and stockpiling.