Recently, the industrial silicon market has remained sluggish, with both futures and spot prices showing a fluctuating and weakening trend. The root cause of this phenomenon lies in the intensification of supply-demand contradictions and the dynamic changes in the upstream and downstream of the industrial chain.
From the supply side, industrial silicon enterprises in the northern region have relatively stable operating conditions, with high production capacity. However, due to the tightening of environmental policies and the rise in production costs, some enterprises in the southwest region have been forced to take measures to reduce production, resulting in an overall supply pattern of high in the north and low in the south. This regional supply-demand imbalance further exacerbates market volatility.

On the demand side, as one of the main downstream customers of industrial silicon, polycrystalline silicon plants have relatively stable operating conditions and maintain strong demand for industrial silicon. However, due to fierce competition within the polysilicon industry, companies generally adopt low-cost procurement strategies, which have had a certain suppressive effect on industrial silicon prices. On the other hand, silicone manufacturers have recently reduced their demand for industrial silicon due to maintenance and other reasons, further exacerbating the supply-demand imbalance in the market.
In this context, the price trend of industrial silicon market shows a fluctuating and weakening trend. Yesterday, the closing price of the main futures contract Si2505 was 10490 yuan/ton, while the spot price of 421 # silicon metal fluctuated between 11050-12450 yuan/ton, with some areas even experiencing a drop of 200 yuan/ton. This price trend not only affects the profit margin of industrial silicon enterprises, but also poses a challenge to the stable operation of the entire industry chain.
Looking ahead, the trend of the industrial silicon market will be influenced by multiple factors. On the one hand, with the tightening of environmental policies and the rise in production costs, the production pressure on industrial silicon enterprises will continue to increase. On the other hand, with the rapid development of emerging industries such as new energy and electronic information, the demand for industrial silicon is expected to continue to grow. In addition, factors such as changes in the international market, policy guidance, and dynamic adjustments in the upstream and downstream of the industrial chain will also have a significant impact on the market.