This week, silicon metal spot prices continued to weaken, with downstream restocking as needed. These are silicon metal prices (by type) as of July 11 and their WoW changes: standard #553 silicon metal in East China (12,000-12,200 yuan/mt, -200 yuan/mt WoW), above-standard #553 silicon metal (12,400-12,500 yuan/mt, -200 yuan/mt WoW), #441 silicon metal (12,800-13,000 yuan/mt, -150 yuan/mt WoW), and #421 silicon metal for silicone (13,400-13,500 yuan/mt, -300 yuan/mt WoW). This week, the spot transaction prices of silicon metal continued to decline, with low orders and procurement prices from downstream and traders. Though some silicon producers offered discounts of 100-300 yuan/mt, transactions remained unsatisfactory. In the futures market, the silicon metal Si2409 contract fluctuated downward, once falling below 11,000 yuan/mt to a historic low. Downstream still showed a low purchase willingness, and market pessimism spread. Although a few silicon producers held prices firm or refrained from selling, silicon metal spot prices showed no sign of stopping the decline as the spot supply could still meet recent downstream procurement orders. In terms of silicon metal exports, due to the previous rise in ocean freight and the standardization of export quotations and settlement businesses, exports in the past two weeks has significantly decreased compared to the previous period.
In the past 2-3 weeks, the spot price of silicon metal has accelerated its decline, putting silicon producers under pressure. As Sichuan and Yunnan enter the rainy season, silicon producers there currently have the lowest costs in the whole year. Since the furnaces have just been started, the possibility of large-scale shutdowns in the near future is very low. As silicon prices continued to fall below the lowest levels in the past two years, the expectation of shutdowns among small and medium-sized silicon enterprises in North China strengthened. Attention should be paid to the sentiment and production of silicon enterprises in Northwest China. In the short term, the spot price of silicon metal is expected to consolidate at low levels.
