Last week, the metal silicon and polycrystalline silicon markets showed different dynamic performances. The spot price of metallic silicon remains stable, while the market price of polycrystalline silicon also remains stable, but there are differences in the market logic behind the two.
In terms of the silicon metal market, the stable production of manufacturers during the Spring Festival and the low market activity after the holiday jointly promoted the stability of prices. On the supply side, the northern region has become the main supplier, while the southern region has a lower operating rate due to the impact of the dry season. On the demand side, there has been a slight increase in demand for metallic silicon from organic silicon monomer factories, but a decrease in demand from polycrystalline silicon and aluminum alloy enterprises. Overall, the supply and demand relationship in the silicon metal market is relatively balanced, and prices lack upward momentum.

In the polycrystalline silicon market, companies are executing pre orders as usual, and post year orders are still under negotiation. Downstream silicon wafer companies are expected to increase their production schedules, leading to a steady increase in demand for polycrystalline silicon. However, there is also a risk of the growth in silicon wafer production scheduling being converted into inventory, which makes it difficult to maintain stable prices for polycrystalline silicon. Nevertheless, the vast majority of in production enterprises actively fulfilling industry self-discipline agreements can help gradually transition the supply-demand relationship of polycrystalline silicon towards balance.
Overall, although both the metal silicon and polycrystalline silicon markets showed a stable price trend in the week after the holiday, there were differences in the market logic and supply-demand relationship behind it. In the foreseeable future, both will continue to operate under their respective market logics and may exhibit different price trends due to the influence of different factors. Market participants need to closely monitor market dynamics and demand changes in order to develop reasonable production and supply strategies.