Industrial silicon price at year end with high upside probability

At present, southwest China has entered the dry period. After the price increase is completed, because of the difference in the level of production management of enterprises, industrial silicon prices are likely to reach 2,100 US dollars/ton. According to the current situation of Yunnan industrial silicon plant, the price of electricity rises by 0.1 yuan, and the industrial silicon production cost will increase by 185-300 US dollars/ton. In October, the domestic industrial silicon production was 392,500 tons, an increase of 10.17% month-on-month and 20.77% year-on-year, but it is expected that it will be difficult to maintain a high growth rate this year. From the perspective of the main production areas of industrial silicon, because the industrial silicon plants in Xinjiang mainly use thermal power generation, the industrial silicon production growth rate is fast. After some large industrial silicon plants increased their production capacity, some manufacturers carried out technical transformation of the project, the production capacity continued to increase, the operating rate grew rapidly, and the industrial silicon output in Xinjiang increased by 17.32% quarter-on-quarter. The industrial silicon plant in Yunnan basically reached its peak in industrial silicon production from August to October this year, and there are no plans to increase capacity. This year, the industrial silicon plant in Yunnan is determined to reduce production during the dry season, and the future industrial silicon production will only decrease and not increase. Sichuan's industrial silicon plant furnace maintenance is more common, manufacturers stockpile goods to increase the mood is strong. On the whole, although the industrial silicon production in the southwest region has decreased, the industrial silicon production in the northern producing areas has increased, which will make up for the decline in industrial silicon production in the southwest region. However, some industrial silicon products are not easy to form substitutes (such as 553# industrial silicon in northern China, and 421# industrial silicon in southern China), under the influence of production changes, the spot price of industrial silicon will diverge. At present, industrial silicon transactions in northern China are more active, while industrial silicon enterprises in southern China have no inventory. Recently, the price difference between 553# industrial silicon and 421# industrial silicon without oxygen in East China is $120 / ton, and the price divergence will continue to expand. In general, industrial silicon enterprises in the southwest are still expected to reduce production. Xinjiang industrial silicon production is relatively stable. Although there is no obvious seasonal recovery on the demand side, there is no significant weak downstream drag on consumption. At present, the bottom of industrial silicon prices may have appeared, and the probability of price increases within the year is higher. For more information about silicon metal, please pay attention to Hainan West Asia Import and Export Group.

Request a Quote

We receive enquiries in English, Español (Spanish), Français (French) and العربية (Arabic).Our professional team will reply to you within one business day.Please feel free to contact us!