Zhangzhou Zhenda New Material Co., Ltd. continues to closely monitor global silicon metal market dynamics. Based on the latest customs data and industry analysis, we are pleased to release our professional insights into China's silicon metal import, export, and price trends for July 2024.
Key Insights:
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Robust Exports, Significant Import Surge: In July 2024, China's silicon metal exports reached 54,100 metric tons, a 14% year-on-year increase, indicating sustained overseas demand. Notably, cumulative imports for January-July surged by 1054% year-on-year, totaling 15,000 metric tons, reflecting evolving domestic demand for specific grades or origins of silicon metal.
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Supply Side: Production Adjustment and Optimization: As Sichuan and Yunnan entered their high-water season in July, lower electricity prices spurred increased operating rates for some silicon producers. However, influenced by overall supply-demand balance and maintenance-related production cuts by smaller silicon enterprises, August's industrial silicon output is projected to show negative growth, indicating a dynamic adjustment of capacity under price pressure.
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Demand Side: Polysilicon Production Under Pressure, Organosilicon & Aluminum Alloy Demand Stable: Polysilicon actual output for August is anticipated to decrease significantly to approximately 131,000 metric tons, with some manufacturers proactively reducing production to alleviate inventory pressure, which may temporarily weaken demand for industrial silicon. Meanwhile, the organosilicon industry maintains healthy operating rates, and the aluminum alloy sector, benefiting from increased EV penetration, shows steady demand.
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Price Trends: Short-Term Low-Level Fluctuation, Future Supply-Demand Watch: Industrial silicon spot prices in July remained relatively stable, though futures main contracts saw a slight decline. The current oversupply in fundamentals and subdued purchasing sentiment suggest that silicon prices will likely operate at low levels in the short term. Future trends will largely depend on silicon producers' operating rates and the actual pace of downstream demand recovery.
As a specialized supplier in the silicon metal sector, Zhangzhou Zhenda New Material Co., Ltd. will continue to leverage its market insights and global supply chain advantages to provide high-quality products to clients and assist them in effectively navigating market challenges. We are committed to growing together with our partners and seizing new opportunities in the industry's evolution.