Silicon Metal (Si≥97%) Year-End Market Sentiment Pessimistic, Producers Expected to Switch Production [SMM Analysis]

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At the end of the year, the silicon metal (Si≥97%) market performed worse than the same period last year. Most manufacturers reported weak recent order demand, with overall new transactions in the market being limited, and prices also showing a weakening trend recently.

In December, due to the longer calendar month, the monthly production of silicon metal (Si≥97%) remained high, with no production cuts or maintenance reported by manufacturers during the month. The overall supply side was relatively sufficient, coupled with weaker downstream demand and the impact of a bearish silicon metal market, leading to weak and declining prices for silicon metal (Si≥97%) in December. The market outlook was not optimistic. Reviewing the price trend for the entire year, silicon metal (Si≥97%) prices showed a continuous downward fluctuation, with the 1,503-grade silicon metal (Si≥97%) recently falling below 10,000 yuan/mt, now operating around 9,900 yuan/mt.

Under the influence of weak December market conditions and sluggish sales by manufacturers, some silicon metal (Si≥97%) producers plan to conduct partial capacity maintenance from January to before the Chinese New Year, or expect to switch to other products after the Chinese New Year. However, the specific production situation will depend on the order signing status from January to before the Chinese New Year. If pre-holiday stockpiling demand from buyers improves significantly next month, silicon metal (Si≥97%) manufacturers may continue stable production.

Currently, overall market sentiment remains predominantly pessimistic. It is expected that the production of silicon metal (Si≥97%) on the supply side in January will likely decrease, but the actual production cuts will need to be closely monitored based on the specific production plans set by manufacturers in January.