The production and price of silicon metal (Si≥97%) both continued to decline. As of the end of July, domestic production of silicon metal (Si≥97%) has decreased for two consecutive months MoM. Under the influence of weakening prices, manufacturers faced significant production pressure, and production cuts continued in July.
According to SMM data, domestic production of silicon metal (Si≥97%) in July was 27,100 mt, down 4,000 mt from June, a decrease of 12.8%. The main reason for the decline in July production was the sharp drop in silicon metal (Si≥97%) prices during the month. The average monthly price fell by 751 yuan/mt compared to June, causing manufacturers to suffer losses. Under this pressure, some manufacturers chose to cut production and shut down furnaces. Currently, the price of silicon metal (Si≥97%, 1.2%≤Fe<1.5%, Ca≤0.3%) is 10,400-10,500 yuan/mt, and the price of silicon metal (Si≥97%, 1.5%≤Fe<1.8%, Ca≤0.5%) is 10,300-10,400 yuan/mt. Some silicon metal manufacturers held prices firm at 10,500 yuan/mt last week, with a few offering slight discounts of 100-200 yuan/mt for transactions, but overall market transactions remained weak.
Due to the significant production pressure from losses, more silicon metal (Si≥97%) manufacturers have reduced or switched production since July. Entering August, only two factories in Shizuishan, Ningxia were still in production, while the rest shut down for maintenance or switched to other products. Most production cuts in July were concentrated in the middle and late parts of the month. Coupled with the impact of low silicon metal prices, the price advantage of silicon metal (Si≥97%) was not significant. Recently, some silicon metal (Si≥97%) manufacturers have also considered switching production. It is expected that the production of silicon metal (Si≥97%) will continue to decline in August.
