After the National Day holiday, silicon metal prices slightly increased, with spot prices remaining firm [SMM Weekly Review]

After the National Day holiday, the trading focus for some specifications of silicon metal slightly increased, while others remained stable. Today, in east China, above-standard #553 silicon metal was priced at 11,700-11,900 yuan/mt, up 100 yuan/mt from before the holiday. #441 silicon was at 11,900-12,100 yuan/mt, up 100 yuan/mt, #421 silicon (for silicone use) was at 12,600-12,800 yuan/mt, unchanged, and #3303 silicon was at 12,600-12,800 yuan/mt, up 50 yuan/mt. After the holiday, silicon metal enterprises and traders tentatively increased their quotes compared to before the holiday, influenced by macro sentiment and the expected production cuts during the dry season in south-west China. Additionally, some silicon enterprises are executing new futures and spot orders, and some silicon plants have low inventory pressure for spot order deliveries. From market inquiries and transactions, most are from traders and a few downstream users replenishing as needed, with overall trading volume limited. However, as suppliers collectively held firm on prices, the trading focus did shift upward despite limited transactions.

Demand side, polysilicon enterprises' operating rates remained stable, with some polysilicon capacity in Sichuan planning maintenance in November, which will somewhat affect November polysilicon production. Silicone enterprises' operating rates slightly decreased compared to before the holiday, mainly due to some silicone capacity having maintenance plans in October, expected to gradually recover by the end of October. Aluminum-silicon alloy enterprises' operating rates mostly returned to pre-holiday levels, with a few alloy plants replenishing as needed after the holiday, and transaction prices increased compared to before the holiday.

After the silicon price increase, downstream purchasing sentiment was not very active, with a few traders showing some intention to stockpile. On the afternoon of October 10, the SI2411 contract fluctuated downward, increasing market caution. Considering that October demand does not show more growth compared to September, silicon prices currently lack the conditions for sustained increases and are expected to fluctuate rangebound in the short term.