Driven by favorable macro policies and a rising market trend, the industrial silicon market has staged an across-the-board rebound. As of September 16, the main futures contract 2511 of industrial silicon closed at 8,915 yuan, representing a cumulative increase of 505 yuan from 8,410 yuan last Tuesday, with a notable gain.


The upward momentum in the futures market has spilled over to the spot market this week. Quotations for 421# metallic silicon have collectively risen by 100-200 yuan/ton, currently ranging from 9,700 to 10,400 yuan/ton. This change has further pushed up the production costs of monomer plants, compressing their operational profit margins once again.


From the perspective of market supply and demand, downstream enterprises currently still focus on rigid demand and maintain a rhythm of small-volume purchases, providing relatively limited support to the upstream market. Some monomer plants with high inventory levels are already facing certain shipment pressures. However, affected by high costs and loss pressures, monomer plants have a low willingness to offer active discounts. In addition, disruptions from unexpected accidents in the past two days have cooled market expectations for a rise in operating rates in late September. It is expected that the overall operating rate of the industry will remain stable, and some monomer plants' confidence in price stabilization has thus been strengthened.


The current market shows obvious differentiated characteristics: most monomer plants have pre-sold orders scheduled until the end of September, but new order transactions have remained sluggish in the past two weeks. Downstream enterprises have reacted calmly to unexpected accidents, continuing the "on-demand procurement" strategy without impulsive stockpiling. This has gradually increased the shipment pressure on some local monomer plants. Industry analysts believe that to achieve the deinventory target before the National Day holiday, the market will probably see a "price-for-volume" promotion phenomenon in the follow-up.