According to the analysis of the Business Society’s market monitoring system, on August 26th, the reference market price for domestic silicon metal # 441 was 11940 yuan/ton, a decrease of 160 yuan/ton or 1.32% from August 1st (market price of silicon metal # 441 was 12100 yuan/ton).

From the Commodity Market Analysis System of Shengyi Society, it can be seen that in August, the overall focus of the domestic silicon metal market shifted downwards. In July, the domestic silicon metal market continued to decline. Entering August, in the first few days, the silicon metal market finally stopped falling and stabilized, and the market situation temporarily stabilized and operated. However, due to the lack of support in the market, it is difficult to maintain stability in the silicon metal market, and the overall market trend continues to move towards the bottom. In late August, the silicon metal market stopped falling and stabilized. As of August 26th, the reference price for the domestic silicon metal 441 # market was yuan/ton.

On the supply side: In August, due to the continuous downward trend of the previous market, although a small number of metal silicon factories stopped production, the overall operating rate on site remained high. Therefore, the overall supply of metal silicon remained loose, and the overall pressure on the supply side was high. The market’s destocking performance was average, and the support provided by the supply side to metal silicon was weak.

On the demand side: In August, the overall downstream demand for silicon metal was weak, coupled with the continuous bottoming out of futures prices, accelerating the downward trend of market prices. Downstream users are cautious about purchasing raw materials, and silicon companies in the Sichuan Yunnan region have basically resumed production to the level of previous years’ abundant water periods. However, downstream demand has increased slightly, and the supply-demand imbalance still appears, leading to negative market sentiment.

Market analysis in the future

At present, there is still an oversupply situation in the metal silicon market. From a cost perspective, some small and medium-sized silicon enterprises have fallen to the edge of the cost line, and their willingness to continue to sell at a discount is not strong. However, the overall production reduction adjustment in the market is also limited. The metal silicon data analyst from Shengyi Society believes that in the short term, the domestic metal silicon market will mainly operate with large stability and small fluctuations, and specific changes in supply and demand need to be closely monitored.