The worsening supply-demand imbalance in the industrial silicon market and the challenges and response strategies of the industry under price pressure
The industrial silicon market is facing unprecedented challenges in recent times, with the pattern of low production in the south and high production in the north exacerbating the supply-demand imbalance, especially with the gradual release of production capacity by large factories in the northwest,
market inventory pressure continues to rise. This change not only directly increases production costs, but also makes the supply-demand contradiction more acute, and the downward trend of futures and spot prices under pressure is obvious. On the demand side, the production schedule of the polycrystalline silicon industry remains stable, but the operating rate of the organic silicon industry has declined, resulting in a slightly weak overall demand. In this context, industrial silicon production enterprises are facing dual pressures: on the one hand, they need to cope with the compression of profit margins caused by rising costs, and on the other hand, they also need to solve the problem of inventory backlog. The industry has begun to explore diversified response strategies, including optimizing production processes, exploring new markets, strengthening inventory management, and seeking policy support, in order to maintain competitiveness and overcome difficulties in the context of supply-demand imbalance.