SunSirs: In March, the Domestic Silicon Metal 441 # Market Experienced a Downward Trend

Price trend

According to the analysis of the SunSirs’ market monitoring system, on March 28th, the reference market price for domestic silicon metal # 441 was 10780 RMB/ton. Compared with March 1st (the market price for silicon metal # 441 was 11,180 RMB/ton), the price decreased by 400 RMB/ton, a decrease of 3.58%.

From the market monitoring system of SunSirs, it can be seen that the domestic spot market for silicon metal # 441 has shown an overall downward trend since March. Entering March, the overall performance of the silicon metal market has been sluggish, and the focus of market negotiations has shifted towards a lower level. As of March 28th, the reference market price for metal silicon 441 in East China was 10,500-10,700 RMB/ton, and the reference market price for metal silicon 441 # in Tianjin was 10,400-10,600 RMB/ton. The market price reference for metal silicon 441 # in Sichuan region was 10,400~10,700 RMB/ton. The market price reference for metal silicon 441 # in Huangpu Port area was 10,600~10,700 RMB/ton, with a price reduction of 100 RMB/ton.

Analysis of influencing factors

In terms of supply and demand: In March, some silicon companies in certain regions experienced production shutdowns and reductions, while also resuming production and adding new capacity, resulting in a slight increase in overall supply of metallic silicon in the market. There was a certain supply pressure on the overall supply side of silicon metal, and the downstream demand for silicon metal was weak. The recovery of the demand side was slow, and the overall supply and demand transmission was hindered, resulting in poor market confidence.

In terms of raw materials: In March, the domestic market for metallic silicon raw materials, such as silica, remained stable. Downstream markets had weak demand for raw materials, and overall market adjustments were limited, providing moderate support for metallic silicon. As of March 27th, the ex factory price of low-grade silica ore in Yunnan was around 330-350 RMB/ton. The ex factory price of high-grade silica ore in Inner Mongolia was around 350-380 RMB/ton. The ex factory price of high-grade silica ore in Hubei was around 400-450 RMB/ton. The ex factory price of high-grade silica ore in Jiangxi was around 430-460 RMB/ton.

Market outlook

As of March 27th, the trading atmosphere in the metal silicon market was light, and downstream factories mainly purchased for essential needs. At the beginning of the week, the focus of negotiations in the metal silicon spot market narrowly declined. During the mid week and weekend periods, there was a confrontation between demand side price suppression and supply side price increase. Some regions had a slight trend of offering discounts after increasing production, but there were also some regions where the cost pressure was low and the willingness was not strong, leading to a stalemate in the overall market operation.

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