Price trend

According to the analysis of the SunSirs market monitoring system, on August 25, the domestic market price reference for silicon 441# was 9,570 RMB/ton. Compared with August 1 (the market price for silicon 441# was 9,980 RMB/ton), the price dropped by 410 RMB/ton, a decrease of 4.11%.

Analysis review

According to the SunSirs market monitoring system, the silicon spot market rebounded in mid-to-early July, supported by positive macroeconomic factors such as the "anti-involution" policy. The market center continued to rise, and prices returned to the 10,000 RMB/ton mark. However, the overall improvement in the silicon market's supply and demand was limited, and its continued support for the market was insufficient. Starting in late July, the market center began to decline. Entering August, the overall silicon market continued its downward adjustment, with the market negotiation focus gradually shifting. As of August 25, the domestic market price of silicon 441# in East China was 9,500-9,700 RMB/ton, around 9,500-9,700 RMB/ton in Kunming, and around 9,500-9,600 RMB/ton in Tianjin. The market price of silicon 441# in Sichuan was around 9,200-9,300 RMB/ton, and around 9,800-9,900 RMB/ton in Shanghai.

Fundamentals

Supply and Demand: Since August, the overall supply of domestic silicon has increased slightly, with production increases primarily concentrated in northern China. As of August 25, both overall silicon supply and production were experiencing a slight increase. Regarding downstream demand, the downstream silicone market for silicon performed sluggishly in August, with cautious raw material procurement. Procurement in the polysilicon market remained stable, with purchases primarily driven by essential needs.

Operational Status: In August, the resumption of production at some silicon plants in Xinjiang led to a slight increase in overall production. Among major regions, Northwest China ranked first with an operating rate of around 76%, followed by Yunnan, which maintained a rate of around 68%. Operating rates for silicon in Xinjiang and Sichuan were around 56-57%.

Market outlook

As of August 25, the price of silicon market was mainly volatile, downstream users mostly purchased at low prices, and the market trading atmosphere was general. SunSirs’ silicon data analysts predict that in the short term, the domestic silicon market will mainly operate in a range of consolidation, and more attention should be paid to the changes in supply and demand news.

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