On February 2, 2026, the global precious metal market experienced an epic volatility. The international spot platinum price plummeted from a historical high of $2789.55 per ounce on January 29th to around $2000 per ounce, with a single day drop of over 10%, marking the largest single day drop in nearly 40 years. The platinum market experienced a shocking moment, with a single day drop of over 17%, setting a new historical record. The domestic market is under simultaneous pressure, and the price of platinum T+D on the Shanghai Gold Exchange has fallen from 630.55 yuan/gram to around 552.15 yuan/gram, a decrease of over 11%. The A-share precious metal sector collectively hit the limit down, while platinum ETFs and platinum stock ETFs generally fell by 8% -9%.
Yesterday, the A-share market fluctuated and adjusted throughout the day. As of the close, the Shanghai Composite Index fell 2.48%, the Shenzhen Component Index fell 2.69%, and the ChiNext Index fell 2.46%. Among them, the stocks of several companies in the organic silicon sector hit the limit down, with Luxi, Sanyou, Xingfa, and Xin'an all falling to over 9%. It is understood that the sharp decline in the precious metal market has triggered a drop in market sentiment, coupled with the motivation for capital profit outflow, jointly driving the correction of A-share and other markets.
Returning to the current trend of the organic silicon market, in the new month, all monomer factories will stabilize prices and open! Specifically, as the Spring Festival approaches, downstream and terminal manufacturers are accelerating their holiday pace, and the actual demand for raw materials has significantly narrowed. Currently, the main focus is on digesting previous inventory, but some downstream enterprises still have a certain need to replenish their warehouses before the holiday. In terms of individual factories, with sufficient pre-sale orders, there is not much pressure to accumulate inventory during the Spring Festival period. Currently, DMC quotations remain firm at 13800-14000 yuan/ton, and the equipment maintains a load reduction mode. The supply and demand pattern continues to improve, which is expected to promote an upward trend after the holiday. Overall, upstream and downstream enterprises are actively delivering pre-sale orders, and the supply and demand relationship is relatively calm. However, due to the uncertainty of the post holiday terminal market, both buyers and sellers have a strong wait-and-see attitude. It is expected that the organic silicon market will continue to operate steadily this week.
Industrial silicon: On the supply side, due to the high cost of electricity during the dry season, manufacturers in the southwest region face significant production pressure. Currently, all production in Sichuan has been halted, while only a few manufacturers in Yunnan are maintaining production, resulting in a noticeable reluctance to sell; A large factory in the northwest region announced production stoppage, resulting in a decrease in overall operating load and a significant contraction in overall production capacity. On the demand side, polycrystalline silicon and organic silicon maintain reduced load operation, with limited demand for industrial silicon. Overall, based on the gradual delisting of downstream enterprises, market trading has become weak, and the supply and demand of industrial silicon market are weak, the market has maintained a range of fluctuations. As of February 2, the closing price of the main futures contract Si2605 is 8795 yuan/ton, and the spot price of 421 # metal silicon continues to be 9800-10200 yuan/ton. It is expected that the market will continue to operate weakly and steadily in the short term. In terms of operating rate: Currently, there are sufficient pre-sale orders from individual factories, and there is no significant adjustment in the overall operating pattern. As the downstream market enters a semi closed state this week, the situation of new orders is not very clear. To avoid the pressure of accumulated inventory in the future, some individual factories are expected to further increase their load reduction efforts in February. It is expected that the overall operating rate will remain around 65% in the short term.