The spot price of silicon metal will continue to fluctuate downward in the near term amid high supply and weak demand

This week, the spot price of silicon metal continued to decline. These are silicon metal prices (by type) as of July 4 and their WoW changes: standard #553 silicon metal in East China (12,200-12,400 yuan/mt, -100 yuan/mt WoW), above-standard #553 silicon metal (12,600-12,700 yuan/mt, -150 yuan/mt WoW), #441 silicon metal (13,000-13,100 yuan/mt, -100 yuan/mt WoW), #421 silicon metal for silicone (13,700-13,800 yuan/mt, -100 yuan/mt WoW), and #3303 silicon metal (13,600-13,900 yuan/mt, -150 yuan/mt WoW). The silicon metal market saw sluggish trading this week, with downstream and traders mostly inquiring. Some silicon companies, under cash flow pressure, offered discounts to sell their products. Due to the small release of downstream procurement orders and a bearish outlook on the market, the overall trading for silicon suppliers remained unsatisfactory. The spot price of silicon continued to decline.

In June-August, we see high supply and weak demand, and the pessimistic outlook on fundamentals remains unchanged. The spot supply remained relatively sufficient and will not face a shortage in the short term. The spot price of silicon metal basically fell to last year's lowest point. Downstream restocked as needed, and the silicon price has not yet shown signs of bottoming out. It is expected that the spot price will continue to fluctuate downward in the near term.