After reaching its peak domestic production for the year in May, the monthly production of silicon metal (Si≥97%) followed the downward trend of prices and continued to decline, hitting a trough in August. In September, production slightly recovered and warmed up. According to SMM data, the monthly production of silicon metal (Si≥97%) in September was 29,400 mt, and it is expected that the monthly production in October will continue to slightly increase, recovering to the level of 30,000 mt.
The slight rebound in September's production of silicon metal (Si≥97%) was mainly due to the resumption of production by manufacturers in Ningxia who completed maintenance at the end of August, with most of the production increase concentrated in September. Additionally, some manufacturers in Gansu continued to increase their capacity for producing silicon metal (Si≥97%), driving the overall production slightly higher in September. In October, due to the natural increase in days compared to September, the monthly production is expected to rise to around 30,000 mt. There were no cases of increased production or resumption in October, with only a few manufacturers indicating plans to resume production at the end of October, which may slightly boost November's production.
In October, the price of silicon metal (Si≥97%) briefly rebounded, with the highest order price for silicon metal (1503) reaching 10,700 yuan/mt at the beginning of the month. However, the good times did not last, and recently the market price for silicon metal (1503) fell back to 10,500 yuan/mt. Downstream buyers still have a sentiment of pressing prices, with most intended transaction prices around 10,400 yuan/mt. Recent order transactions for silicon metal manufacturers have been limited, with most manufacturers still fulfilling previous orders and having little spot cargoes left, aside from those standing firm on quotes.
Under the influence of still sluggish price operations, manufacturers may find it difficult to have the willingness to increase or switch production to silicon metal (Si≥97%), and the monthly production is expected to remain stable, fluctuating around 30,000 mt.
