Zhongsheng Silicon Cuts Output, SMM Says

Based on supply-demand balance calculations, the industry experienced slight destocking from January to February. However, in March, with the increase in operating capacity on the supply side, production rose sharply, while there was almost no growth on the demand side, shifting the balance back to surplus. Polysilicon enterprises with integrated silicon metal capacities have relatively large production scales. Large-scale silicon enterprises (with annual capacities of 100,000 mt or more) increased their supply share, offering greater supply stability compared to small and medium-sized silicon enterprises. The fundamentals of silicon metal are expected to remain characterized by strong supply and weak demand in the near term, keeping spot silicon metal prices at low levels in the short term.

The silicon powder market is crucial for modern industries due to its unique properties, including high purity and thermal conductivity, making it ideal for electronics, ceramics, and alloys. The price dynamics are influenced by raw material availability, production costs, and market demand, with high-purity and ultrafine particle sizes commanding premium prices. Technological advancements have improved production efficiency, reducing costs and optimizing pricing. Demand from key industries such as electronics and ceramics drives the market, with a growing interest in high-purity silicon powders for advanced applications. Emerging uses in aerospace and medical technology are expanding the market, with black silicon carbide powder showing potential for material strength and durability. Research indicates that silica is not inert, necessitating further study into its reactivity. The market is also affected by global economic factors and is exploring new markets and applications, particularly with the use of Iron Oxide Synthetic Powder in innovative ways. Metal.com, established in 2015, is a leading platform providing real-time price information, logistics, and financial services to the silicon powder market, facilitating secure and transparent transactions. Companies can navigate market fluctuations by diversifying sourcing, monitoring supply chains, and investing in R&D to maintain a competitive edge and drive technological advancements.

July industrial silicon output in China stood at 272,000 mt, an increase of 64.4% year on year and 18.1% month on month, growth sustained according to SMM survey.

Trading improved in the oxygen-free #553 silicon market as China’s National Day holiday nears, SMM finds.

Some participants predict price growth of metallurgical-grade silicon to slow down, as buyers in face of high inventory will reduce purchases with nearing of delivery data at the end of month.

Silicon plants in Zhangzhou and Sanming will also cut, or halt output with nearing of BRICS meeting.

China's steel mills started bidding negotiation for Si-Mg alloy in August, and had intense price struggle with traders.

Some large steel mills in south China launched biddings for Si-Mg alloy ahead of schedule for August.

Traders, suffering losses due to big price gap between offers by silicon metal plants and downstream purchase prices, postponed delivery after negotiation with downstream buyers.  

Silicon traders are in a dilemma of price hike, following silicon producers in Yunnan which have raised offers up sharply on July 4 due to rising raw material prices.