Ferro silicon & Silicon metal
In 2023, under the macro background of commodity pressure, overseas demand is sluggish, and energy prices continue to decline from high levels. Market demand shows structural changes, with new energy, new materials, new technology and other fields becoming growth points. Since the second half of the year, the market has been very cautious about the expectations of economic stimulus during the “Golden Nine Silver Ten” peak season and after important conferences, and our main export products have seriously declined.
The price of Ferro silicon continued to decline in the first half of 2023. The market’s optimistic expectations for the future gradually turn into a negative aspect of weak reality, and even has quite pessimistic expectations for the future. The continuous decline in Ferro silicon production has brought about a price game between two forces of supply and demand .
In August, the large Silicon metal factories in Xinjiang have significantly raised prices, and silicon factories in other regions have quickly followed up with small explorations. After experiencing a double downturn in price demand in the first half of the year, Silicon factories and Traders are generally eager to rise. However, downstream only Polysilicon was normal, while Organosilicon and Aluminum alloys were still sluggish. It remains to be seen whether prices can enter the upward channel as silicon factories wish under the expectation of price increases in Sep and Oct.
In the context of a significant decrease in global economic demand, the phenomenon of bidding for export orders is particularly evident, and the enthusiasm for replenishment and consumption in previous years has gradually disappeared. We will continue to pay attention to whether the import and export trade in the second half of the year can usher in a turnaround!