Silicon metal prices at downside risk after the National Day holiday

This week, spot silicon metal prices remained largely stable, with some grades showing slight price adjustments. As of September 26, in east China, standard #553 silicon metal was priced at 11,400-11,500 yuan/mt, unchanged WoW; above-standard #553 silicon metal was priced at 11,600-11,800 yuan/mt, down 50 yuan/mt WoW; 441# silicon metal was priced at 11,800-12,000 yuan/mt, unchanged WoW; 3303# silicon metal was priced at 12,600-12,700 yuan/mt, unchanged WoW. This week, driven by favorable macro policies such as interest rate cuts, RRR cuts, and mortgage rate cuts on existing home loans, the main SI2411 contract for silicon metal rose continuously, peaking at 9,990 yuan/mt before falling back to around 9,600 yuan/mt. This increase in futures prices did not lead to an increase in supply-side quotation sentiment, and downstream price negotiation sentiment remained. Pre-National Day downstream restocking orders were gradually released, with orders tapering off towards the weekend, mainly for aluminum-silicon alloy users restocking as needed.
Pre-National Day downstream restocking has been largely completed, with market transactions expected to be quieter next week. During the holiday, silicon companies are expected to maintain normal production, with some companies planning to resume production soon. Silicon metal operating rates remain high, with downstream and traders holding a pessimistic view for post-holiday, with a risk of silicon metal prices falling.