Industrial silicon raw material prices remain weak and stable [SMM Analysis]

As the Chinese New Year approaches, although the production of downstream industrial silicon was maintained, most downstream silicon plants have suspended raw material procurement due to the impact of goods shipments. During the Chinese New Year, most downstream silicon plants will mainly consume raw material inventories. The overall market demand for industrial silicon raw materials has been weak recently, and combined with the sluggish industrial silicon market before CNY, prices in all aspects of the industrial silicon raw material market have been weak and stable recently.

The recent demand performance of the silicon coal market has been relatively lukewarm. The recent orders for silicon coal such as blended coal have been slightly poor. The mines have also successively suspended production. At present, silicon coal manufacturers in many regions are still bullish on the market outlook. After the holiday, coal washing plants in some areas intend to adjust their prices according to the trend of downstream industrial silicon prices, and offer small profits to the downstream to stimulate order demand.

The market demand for silica and charcoal is also poor. The overall operating rate in the southwest region remains sluggish during the dry season. The silicon market is sluggish. Some silicon companies in the northwest region have also recently stopped production for maintenance. The overall domestic silica and charcoal production and consumption demand has entered a relatively low level. The overall order situation is maintained by silicon plants in the northwest region. Silicon companies in production started purchasing raw materials to replenish their inventories in early January. As the Chinese New Year approaches, most silicon companies still have raw materials needed for production. Due to the impact of poor shipments, most silicon companies have no intention of replenishing their inventories in the near future. After the holiday, silicon plants' replenishment procurement needs may gradually recover.