Chaos in Silicon Spot Market as Sharp Drop in Silicon Futures Prices Triggered Pessimism

The industrial silicon futures 2308 contract fell below 15,000 yuan/mt to around 14,700 yuan/mt. The contract rose in late trading on April 6 and closed at 15,225 yuan/mt.

The continuous sharp drop in the futures market triggered pessimism among some downstream users over the spot prices, prompting them to push for lower procurement prices. There was a chaos in spot quotes driven by factors such as product quality, futures and spot price arbitrage, and cost differences across silicon factories. Transactions were made as required.