SunSirs: Weak Demand Has Led to a Slight Decline in the Overall Metal Silicon Market Since August

https://www.chemnet.com   Aug 27,2024 SunSirs

Price trend

According to the analysis of the SunSirs' market monitoring system, on August 26th, the reference market price for domestic metal silicon # 441 was 11,940 RMB/ton, a decrease of 160 RMB/ton or 1.32% from August 1st (the market price for metal silicon # 441 was 12,100 RMB/ton).

Analysis review

From the Commodity Market Analysis System of SunSirs, it can be seen that in August, the overall focus of the domestic metal silicon market shifted downwards. In July, the domestic metal silicon market continued to decline. Entering August, in the first few days, the metal silicon 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 metal silicon market, and the overall market trend continued to move towards the bottom. In late August, the metal silicon market stopped falling and stabilized. As of August 26th, the reference price for the domestic metal silicon 441 # market was 11,940 RMB/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 metal silicon was weak, coupled with the continuous bottoming out of futures prices, accelerating the downward trend of market prices. Downstream users were cautious about purchasing raw materials, and silicon companies in the Sichuan and Yunnan region basically resumed production to the level of previous years' abundant water periods. However, downstream demand had increased slightly, and the supply-demand imbalance still appeared, leading to negative market sentiment.

Market outlook

As of August 26th, there was still an oversupply situation in the metal silicon market. From a cost perspective, some small and medium-sized silicon enterprises had fallen to the edge of the cost line, and their willingness to continue to sell at a discount was not strong. However, the overall production reduction adjustment in the market was also limited. The metal silicon data analyst from SunSirs 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.

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