This week, mainstream spot silicon metal prices remained stable, with suppliers standing firm on quotes and downstream sentiment leaning towards caution. The market maintained transactions as needed. As of October 31, the mainstream transaction prices of standard #553 silicon metal in east China were 11,500-11,700 yuan/mt, up 100 yuan/mt WoW. The prices of above-standard #553 silicon metal were 11,700-12,000 yuan/mt, up 50 yuan/mt WoW. The prices of #441 silicon metal were 12,000-12,100 yuan/mt, up 50 yuan/mt WoW. The prices of #421 silicon metal (for silicone) were 12,700-13,000 yuan/mt, flat WoW. The SI2412 futures contract fluctuated rangebound around 12,800-13,100 yuan/mt. The spot price of #421 silicon metal at Tianjin Port was around 12,100 yuan/mt. Silicon producers in Sichuan and Yunnan showed strong sentiment to stand firm on quotes due to significant production cuts, while quotes from north China producers also remained basically stable. Downstream users were mostly digesting inventory and observing the market, with few new orders for traders and light inquiries, leading to a stalemate in spot silicon metal transactions.
In November, the silicon metal market is expected to show weak supply and demand. Considering the fundamentals, with a pessimistic outlook for polysilicon operating rates in November-December, it is difficult for the industry to undergo destocking in the fourth quarter without unexpected factors. However, the significant production cuts in Sichuan and Yunnan, combined with increased costs for secondary silicon, have led to a strong sentiment to stand firm on quotes within the industry. Although price increases are not sustainable, spot prices are likely to rise easily and fall with difficulty in the short term.
