[SMM Analysis]On August 28, 2025, the Office of the US Trade Representative (USTR) announced a three-month extension of the "Section 301" tariff exclusions for certain Chinese goods. These tariffs originated from the US investigation into China's policies on technology transfer, intellectual property, and innovation. The exclusions, originally set to expire on August 31, 2025, have now been extended until November 29, 2025.

[SMM: Silicon Metal Weekly Social Inventory Continues to Decline WoW] SMM reported that the total social inventory of silicon metal in major regions was 547,000 mt as of July 17, a decrease of 4,000 mt WoW.

[Spot silicon metal prices continue to rise]: This week, spot silicon metal prices continued to climb! In the spot market, as of July 17, SMM east China oxygen-blown #553 silicon was priced at 9,100-9,300 yuan/mt, up 450 yuan/mt WoW, while #441 silicon was priced at 9,400-9,500 yuan/mt, up 400 yuan/mt WoW. In the futures market, the most-traded SI2509 futures contract continued to increase during the week, with a high of 8,880 yuan/mt and a low of 8,350 yuan/mt. It closed at 8,745 yuan/mt on July 17, up 275 yuan/mt or 3% WoW. Since mid-to-late June, the current round of spot silicon metal prices has risen by over 1,000 yuan/mt, and silicon producers' willingness to sell has increased. Downstream users' acceptance of prices has weakened compared to last week, with market inquiries and new order transactions slowing down in recent days.

[The market for silica/silicon coal/electrodes at the raw material end remains relatively stable, with petroleum coke prices mainly consolidating] Silica/silicon coal/electrodes: Demand has slightly increased. Petroleum coke: Shipments are stable, supported by downstream enterprises' restocking to meet immediate needs.

[Daily Review of ADC12 Prices: The most-traded cast aluminum alloy contract closed slightly higher, with bears reducing their positions during the day] On the spot market, the SMM A00 aluminum price rose slightly by 50 yuan/mt to 20,570 yuan/mt on Thursday compared to the previous day, while the SMM ADC12 price remained stable at 20,000 yuan/mt. Following a significant drop in aluminum prices on Monday this week, prices have rebounded slightly for three consecutive days starting from Tuesday, with a cumulative increase of 100 yuan/mt. However, the secondary aluminum market lacked sufficient upward momentum, and prices continued to remain stable.

[SMM Weekly Silicone Review: Rising Costs Lead to Higher DMC Quotations, While Procurement Demand Remains Sluggish] This week, DMC quotations from monomer enterprises in Shandong province stood at 10,800 yuan/mt, representing a WoW increase of 100 yuan/mt. DMC quotations from other monomer enterprises in China remained largely stable this week, with the mainstream transaction price center hovering around 10,800 yuan/mt. Low-price quotations in the domestic market rose slightly this week, while the matching degree of transactions declined. With downstream enterprises having sufficient raw material inventories for the time being and limited willingness to purchase, the market this week saw quotations rise but actual transaction prices remain unchanged for the time being. Downstream demand still awaits recovery during the "September-October peak season".

[SMM Weekly Review: Wafer Quotations Surge Significantly, While Battery Demand Weakens and Prices Come Under Pressure] This week, the price of N-type 183mm wafers ranged from 1.05 to 1.45 yuan/piece, 210R wafers were quoted at 1.2 to 1.65 yuan/piece, and 210mm wafers were priced at 1.4 to 1.93 yuan/piece. Wafer quotations saw a significant increase this week. A self-discipline meeting related to the wafer industry was held this week, and wafer enterprises began to quote prices based on full costs. Some top-tier enterprises significantly raised their quotations, while others adopted a cautious wait-and-see approach, resulting in a fragmented market quotation landscape. Currently, there have been no actual transactions at the high voluntary prices, and the market is observing downstream acceptance and price adjustments.

[How is the current situation of the silicon coal market amid the rising trend in both the silicon metal and coking coal markets?] Overall, the silicon coal market is largely stable. For downstream silicon plants, the cost of raw material silicon coal has remained unchanged recently. However, if the spot price of coking coal, the raw material, generally increases in the future, there is an expectation that the silicon coal price will follow suit.

[Daily Review of ADC12 Prices: Secondary Aluminum Prices Remain Stable with Short-Term Fluctuations Rangebound] On the spot market side, today's SMM A00 aluminum price was reported at 20,510 yuan/mt, up 40 yuan/mt from Monday; the SMM ADC12 price remained stable at 20,000 yuan/mt.

[Silicone 107 Rubber Market: Cost-Driven Price Increase Against the Trend] Since last week, the silicone 107 rubber market has experienced a price increase against the trend, primarily driven by the sharp jump in the price of DMC, a raw material.