The stalemate between buyers and sellers is expected to keep silicon metal spot prices stable in the short term

This week, the decline in silicon metal spot prices narrowed, and the prices showed signs of stabilisation. These are silicon metal prices (by type) as of August 1 and their WoW changes: standard #553 silicon metal in East China (11,600-11,700 yuan/mt, flat WoW), above-standard #553 silicon metal (11,700-11,800 yuan/mt, -100 yuan/mt WoW), #421 silicon metal (12,200-12,400 yuan/mt, -200 yuan/mt WoW), and #421 silicon metal for silicone (12,700-12,900 yuan/mt, -200 yuan/mt WoW). In the futures market, the most-traded Si2409 contract fluctuated between 10,200-10,400 yuan/mt. Compared to the spot quotes by leading producers, the futures prices showed no significant advantage, with spot market transactions mainly occurring between factories and downstream customers or traders.

Currently, the spot price of silicon metal has approached the cash cost in Southwest China, with losses based on full costs. Most silicon companies were no longer willing to continue selling at a discount, and market quotations gradually stabilised. Downstream purchase orders were placed based on demand. The stalemate between buyers and sellers is expected to keep spot prices stable in the short term. A price rebound will require time or new positive news to stimulate the market.