Recently, some individual factories in Shandong have raised their DMC quotations by 400 yuan/ton to 13900 yuan/ton, and restored the policy of free shipping. This price adjustment breaks the market pattern of high in the south and low in the north, making DMC prices basically consistent with mainstream quotes from other individual factories, maintaining around 14000 yuan. However, the market's response to this price adjustment has been lukewarm, with midstream and downstream enterprises maintaining a calm attitude towards the price adjustment due to average demand and remaining inventory to be consumed in the early stages.
From the supply side, the operating rate of industrial silicon remains low in the south and high in the north. The resumption of production capacity of large factories in the northwest is expected to gradually release after next week, which will further exacerbate market inventory pressure. On the demand side, the production of polycrystalline silicon has basically maintained the previous level, while the operating rate of organic silicon has gradually declined, resulting in a slight decrease in overall demand. The imbalance between supply and demand has continuously increased the production pressure of industrial silicon, and the pressure on spot and futures prices is significant.
For the southern region of China, this price adjustment is actually a visible increase and a hidden decrease, and midstream and downstream enterprises will inevitably question the determination of upstream enterprises to raise prices. Therefore, the current market still continues the strategy of watching more and moving less, with a strong wait-and-see sentiment. It is expected that the industrial silicon market will maintain a bottoming out trend in the short term, with limited price fluctuations.