Preliminary situation of the differentiation of silicon metal industry chain

①Under the strict constraints of global carbon emissions, small and medium-sized enterprises are gradually eliminated, and the proportion of leading enterprises has increased. However, as the capital operation continues to test the industry's bottom price, the price of industrial silicon has dropped for several months in a row, the new production capacity of industrial silicon has been restricted, and the operating rate has also been significantly affected. The production cost of industrial silicon factories has been challenged again. Industrial silicon factories without production advantages in various regions of China have successively reduced production and shut down furnaces. Silicon factories in the southern Sichuan and Yunnan regions have been slow to resume production.

②At present, only the Xinjiang region in China has stable electricity. At present, some factories are under great pressure in production and sales, and their inventory is high, and production has been gradually reduced or stopped. The number of furnaces opened in Xinjiang factories has decreased from a high of 167 in late March to 139 at present. The shutdown of some factories is caused by cost inversion. Due to the differences in production and smelting processes, the time for raw material preparations in silicon factories will also bring a large cost difference sooner or later during the continuous slow decline in raw material prices. At present, 6 factories in Xinjiang have stopped production, and 7 factories plan to reduce or stop production.

③In terms of downstream demand in the future, the global photovoltaic industry will become an important energy highlight in various countries in the next few decades, and the demand for polysilicon is expected to maintain a high growth rate. With the growth of the global economy, the demand for organic silicon will also increase steadily. The short-term demand for the aluminum alloy sector is facing a certain shrinkage due to the cooling of real estate, but with the continuous promotion of automobile lightweight, it is expected to make up for the decline in real estate demand and achieve positive growth again.

In this regard, West Asia Import and Export Company reminds you that the industrial silicon industry chain will gradually differentiate, and the price of industrial silicon is supported by costs and driven by consumption, although it is currently operating at a low level. However, with the involvement of chips and the new photovoltaic industry, the price will increase when the time is right.
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