bigcatkingmegaways| Industrial silicon: The output in April was 358,700 tons, down 2.1% month-on-month. The output in May is expected to increase

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Domestic industrial silicon output decreased by 2% in April compared with the previous monthBigcatkingmegaways.1% to 358700 tons, expected to increase in MayBigcatkingmegawaysThe demand is weak, the inventory of polysilicon is accumulated, the profit of organic silicon is poor, and the competition of aluminum alloy is intense. The supply and demand of industrial silicon market is weak, and the social inventory is on the high side, but the downward space may be limited.

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The price of industrial silicon fluctuates, the spot market is arranged sideways, and the futures market fluctuates in a narrow range.

According to market data, industrial silicon prices show a horizontal consolidation trend in the spot market. The prices of some low-grade silicon and recycled silicon are slightly higher than at the beginning of the month, while the prices of 55 million and 42 million products are basically stable compared with the beginning of the month. In the futures market, the main contract Si2406 fluctuates around 11960 yuan / ton in the price range, showing the market's wait-and-see attitude towards future price trends.

On the supply side, domestic industrial silicon production reached 358700 tons in April 2024, a decrease of about 8000 tons, or 2.1 per cent, compared with 366700 tons last month. However, there was still an increase of 23.2% compared with the same period last year. Industrial silicon production is expected to increase month-on-month in May as the output of major producers in the northern region increases steadily.

On the demand side, polysilicon production continued to rise in April, but due to falling prices and inventory accumulation of polysilicon manufacturers, some manufacturers chose to overhaul. It is worth noting that the overhaul is mainly focused on the old production line, and the market mood is generally cautious. It is expected that the progress of new capacity production in the later stage may not be as good as expected. In the case of organosilicon, the willingness of monomer enterprises to stop production has increased due to poor profits. The aluminum alloy industry is relatively stable, but the market competition intensifies and it is more difficult for manufacturers to ship goods.

Looking forward to the late market, the fundamentals of industrial silicon are facing some pressure. On the one hand, there is room for supply to rise; on the other hand, downstream demand is still weak, resulting in high social inventory. But given the current level of industry profits, the price downside may be limited. On the market, Si2406 contracts show a weak finishing trend, investors are advised to maintain short-term wait-and-see or adopt band operation strategy.