Industrial silicon supply and demand game continues this week, with weak market adjustment.

This week, the industrial silicon market maintained a "weak supply and demand" pattern, with prices moving slightly lower. The futures market continued to decline, with the main contract 2605 closing at 8285 yuan/ton as of March 19th, a decrease of 390 yuan/ton for the week, representing a drop of over 4.5%, dragging down the spot market sentiment. Prices in major production areas have generally followed suit, with An Taike's spot price statistics on March 19th showing a nationwide industrial silicon comprehensive price of 9010 yuan/ton, a decrease of 211 yuan/ton from the previous week. In terms of specifications, the 553# price was 8614 yuan/ton, the 441# price was 8963 yuan/ton, down 49 yuan/ton and 206 yuan/ton respectively from the previous week. In regional markets, the comprehensive prices in Xinjiang, Yunnan, and Sichuan were 8721 yuan/ton, 9896 yuan/ton, and 10000 yuan/ton respectively, with prices falling by 52 yuan/ton, 109 yuan/ton, and 50 yuan/ton to varying degrees. Export FOB prices remained unchanged from the previous week. This week, the supply side of industrial silicon continued its post-holiday recovery trend, but companies are still struggling to balance between "loss if not in operation" and "loss once in operation". The operating rates in southwestern regions like Yunnan and Sichuan have slightly rebounded, but are still below 10%. Some enterprises that have been shut down for a long time are planning to resume production due to equipment depreciation, loss of personnel, and pressure from raw material inventories, but affected by the continuous decline in silicon prices, the actual willingness of enterprises to resume production is low, and the pace is slower than expected. Inner Mongolia, Gansu, and Ningxia have relatively stable operating rates. In terms of costs, driven by the rise in oil prices, the costs along the coal chemical industry chain have increased, with petroleum coke and partial electricity prices rising, providing some support to the cost of industrial silicon. The previously highly anticipated price hike at major electricity factories in Xinjiang had provided strong support to prices, but as expectations faded, cost support weakened and prices significantly fell back. Overall, the supply side is still in a state of releasing inventory, but the pace is moderate, combined with cost support, limiting the short-term downward price space.