As the silicon metal (Si≥97%) market cooled down, producers reduced production

Recently, with the continuous weakening of silicon metal prices, the price spread between silicon metal (Si≥97%) and silicon metal is not significant. Additionally, downstream and end-users showed a low purchase willingness. With the continuous decline in silicon prices, the demand for silicon metal (Si≥97%) was minimal. Producers of silicon metal (Si≥97%) have reported that recent orders remain weak, and some producers in Ningxia currently operate at a loss.

Due to losses, some producers of silicon metal (Si≥97%) in Ningxia and Gansu reduced production or switched to other products. The specific survey statistics are as follows:

Currently, the market price of silicon metal (Si≥97%) remains weak, with the signing price for #1503 falling to 11,100-11,200 yuan/mt. Producers' sentiment diverged amid falling prices. Some producers, considering costs, were reluctant to make quotes and adopted a wait-and-see stance or appropriately reduced production for maintenance to slow down the growth in inventory accumulation. Other producers remained pessimistic about the future, expecting further price declines for silicon metal (Si≥97%), and continued to quote and sign orders normally. However, due to the impact of low silicon metal prices, the demand for silicon metal (Si≥97%) was very weak, and orders were not ideal.

The production reduction of silicon metal (Si≥97%) for maintenance mostly began in mid to late June. The output of silicon metal (Si≥97%) in June decreased by more than 5,000 mt MoM. Entering July, the production reduction continued. It is expected that the output of silicon metal (Si≥97%) in July will continue to decline.