Current situation of metal silicon: inventory trends and cost dynamics

As we delve deeper into the world of metal silicon, the latest data from Baichuan and SMM reveal important trends in inventory levels and production costs that are shaping the industry landscape. In the first week of April 2025, social inventory of industrial silicon reached 608,000 tons, an increase of 4,000 tons from the previous week. This increase is worth paying attention to, especially because it reflects the continued fluctuations in market supply and demand.

Further subdividing the inventory, the Guangzhou Futures Exchange warehouse receipt inventory was 352,000 tons, an increase of 3,000 tons from the previous week. In contrast, factory inventory fell slightly, down 5,000 tons to 241,000 tons. This mixed inventory trend shows that there is a complex interaction between production capacity and market demand, highlighting the challenges faced by manufacturers in balancing production and inventory levels.

In terms of cost, the production cost of metal silicon decreased slightly in March, the prices of silica and silicon coal fell slightly, and high-sulfur petroleum coke was still in a state of competition between upstream and downstream. Although the input cost has decreased, the overall profitability of the industry has not improved accordingly, and the spot price continues to be under pressure, resulting in tight funds and continuous losses for many companies.

In summary, the metal silicon market is currently in a challenging environment, characterized by increased inventory and volatile production costs. As manufacturers work to adapt to these dynamics, the focus will likely remain on optimizing production efficiency and managing costs to reduce losses in an increasingly competitive environment. The coming months will be critical in determining how these factors will affect the future development of the metal silicon industry.