Recent Industry Trends in Silicon Metal

In 2025, the supply and demand structure of the silicon metal industry is undergoing deep adjustment. Although industrial silicon production maintains growth, social inventory still needs to be digested, and spot price maintains a low level of oscillation. The start of production in the north is relatively stable, while the south is subject to cost and policy constraints to maintain low capacity operation.

In the future, capacity expansion and inventory pressure coexist, the supply side of the overall trend is stable. Demand side shows structural differentiation, polysilicon, silicone and aluminium alloy three major areas of demand differentiation is obvious. Polysilicon demand is significantly affected by fluctuations in the photovoltaic industry, the organosilicon field is facing growth bottlenecks, and the demand for aluminium alloys is relatively stable but affected by the slow recovery of the end market.

The price of silicon metal in early 2025 showed the bottom of the oscillation, the spot market has recovered but the overall atmosphere is weak. Some production capacity in the north is restored, but the industry as a whole is difficult to start, and production and consumption are basically balanced. In the short term, there is limited space for price restoration, weak market sentiment support, inventory to be digested, and low demand.

Industry dynamics, some silicon metal enterprises in the northern region have resumed production plans, but the actual output increment is limited. The southern region by the cost and policy constraints to maintain low capacity operation. In the next few months, it is expected that the northern production increase, the southern production reduction space is not large, the overall production trend is increasing.

Demand, polysilicon production is still expected to decline slightly, but demand is slightly greater than supply, the trend of de-stocking will continue. In addition, the industrial silicon futures market on the demand for incremental expectations, but in the short term, traders wait-and-see mood is strong.