In the first week of resuming work after the New Year, the silicone market opened the new year with a stable trend. The news of a successful start to a major project has brought positive expectations to the entire industry. Although the current market performance is flat, there is hidden potential for a post holiday market explosion.
In terms of individual factories, the resumption of work after the holiday is good, and most of the devices have started operating normally. Due to sufficient pre-sale orders, there is not much pressure to reduce inventory. However, there is a slight deficiency in terms of demand. Most companies have just resumed work and have not yet entered the state of stocking up. This has led to a slightly flat overall market. But with the comprehensive start of construction by upstream and downstream enterprises next week and the gradual recovery of the market, it is expected that the first round of market trend after the holiday may take place. This will bring new development opportunities and challenges to the silicone market.
On the cost side, the industrial silicon market presents a weak supply-demand pattern. There are signs of resumption of work on both the supply and demand sides after the holiday, but the overall level of work is still relatively low. The sluggish demand for downstream polycrystalline silicon has led to increased pressure on total inventory and warehouse receipts. However, the price has shown a trend of low volatility. The closing price of the main contract hovering around the cost line provides some support for the market. In the future, the downward space for spot prices is limited. Under the call of "anti internal competition" in the overall environment, there may be some market movements that bring new opportunities and challenges to investors.