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The worsening supply-demand imbalance in the industrial silicon market and the challenges and response strategies under price pressure

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Currently, the industrial silicon market is facing unprecedented challenges of supply-demand imbalance, and the pattern of low production in the south and high production in the north further exacerbates the market's imbalance. The resumption of production capacity by major factories in the northwest region is expected to gradually release in the coming weeks, which undoubtedly puts greater pressure on the already saturated market inventory. At the same time, the demand side has shown mediocre performance, with stable production of polycrystalline silicon and a decline in production in the organic silicon industry due to weakened downstream application demand, resulting in overall weak demand.

Against the backdrop of supply-demand imbalance, industrial silicon prices are under significant pressure, and both futures and spot markets are facing downward pressure. For manufacturers, how to maintain profitability under the dual pressure of overcapacity and sluggish demand has become an urgent problem to be solved. On the one hand, enterprises need to strengthen internal management, optimize production processes, reduce costs, and enhance competitiveness; On the other hand, we should actively explore new markets and seek new growth points, such as exploring applications in new energy, new materials, and other fields, in order to respond to market changes with a diversified strategy. At the same time, the government and industry associations should also play a guiding role, promoting the healthy and orderly development of industries and alleviating supply-demand contradictions through policy support, industry standard setting, and other means.

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