Zhangzhou, February 2025 — Zhangzhou Zhenda New Material Co., Ltd. convened an internal seminar in February 2025 to comprehensively discuss the development trends and future directions of the industrial silicon industry for the upcoming year. The discussion focused on global supply-demand rebalancing, market price movements, technological innovations, and shifts in the international trade environment, providing forward-looking insights for the company's strategic planning.
The seminar's analysis indicated that the industrial silicon market is set to enter a crucial rebalancing phase in 2025. On the supply side, global output is projected to slightly decrease to approximately 4.8 million tons, primarily influenced by price pressures and production cuts in certain downstream sectors. The Northwest region is expected to see continued capacity growth due to stable power supply and photovoltaic industry clusters, while the Southwest faces seasonal fluctuations. Despite some older capacity being phased out, the flexibility of new capacities suggests the industry will still face some oversupply pressure.
Regarding demand, polysilicon demand is anticipated to remain stable, driven by the photovoltaic industry. The organosilicon sector and aluminum alloys (benefiting from increased EV penetration) are also expected to show moderate growth. In terms of exports, China's industrial silicon volume is likely to increase due to competitive pricing and rebounding overseas demand, though potential impacts from international trade policies warrant caution.
Price-wise, industrial silicon prices are forecast to experience volatile pressure in 2025, with a core range of 9,500-15,500 RMB/ton. The first half of the year will likely see suppression from high inventory and production recovery during the wet season, while the latter half may stabilize with improving demand. Leading enterprises in the Northwest are expected to maintain profitability due to their cost advantages.
The seminar also underscored the importance of technological innovation and industrial upgrading. The industry is actively transitioning towards more efficient and environmentally friendly processes, such as fluidized bed reduction and electrolysis, alongside the adoption of intelligent manufacturing. Demand for high-end silicon materials, like high-purity silicon, continues to grow, but capacity release remains constrained by technological barriers and cost limitations.
Looking ahead, while the industrial silicon sector faces challenges like oversupply, high inventory, and trade friction, the continuous expansion of downstream applications such as new energy (photovoltaics, new energy vehicles) and semiconductors, coupled with growing demand from emerging overseas markets, presents significant long-term growth opportunities.
Zhangzhou Zhenda New Material Co., Ltd. is committed to proactively addressing industry challenges and seizing market opportunities through ongoing technological innovation, capacity optimization, and strategic international market positioning. Our goal is to consistently deliver reliable industrial silicon products and services to global clients.