The current status of metal silicon: inventory, cost and policy impact

The inventory trend of industrial silicon market was stable this week. According to SMM statistics, the total inventory including registered warehouse receipts was 869,000 tons as of March 14, with a slight decrease in inventory. Inventory stability is crucial for both manufacturers and suppliers, reflecting the balance of market supply and demand.

In terms of cost, the price of raw material silicon coal has shown a downward trend, but the situation in Xinjiang is special. Thanks to the cost reduction and efficiency improvement of large furnaces in the northern region, the price of silicon coal has remained strong. Although the price of silicon coal has weakened overall, the potential for further decline seems limited, especially in Yunnan and Sichuan, where the seasonal fluctuations in hydropower supply are large.

In addition, the country advocates "anti-involution", simplifies operations, and reduces unnecessary competition. The industrial silicon industry is also facing transformation, which may have an impact on the industrial silicon industry. It is recommended to pay attention to the specific support policies that will be introduced soon.

In addition, with the increasing environmental awareness, especially the implementation of China's dual carbon goals and the EU carbon tariffs, hidden costs such as desulfurization, denitrification, and exports may rise. These regulatory changes may bring additional financial burdens to companies in the metallic silicon industry, forcing companies to make strategic adjustments to maintain profitability.

In summary, metal silicon inventory levels remain stable, but the interaction of raw material costs and policy changes has brought challenges and opportunities to industry participants. Keeping a close eye on these dynamics is essential to grasp the future landscape of the industrial silicon market.