Short-term industrial silicon prices are expected to rise

In 2024, with the steady improvement of aluminum alloy and silicone demand, industrial inventories are expected to fall to a low level, and the continuous release of just need will push up the price of raw material industrial silicon.  z The production in southwest China was reduced due to the dry season, and the operating rate in Sichuan dropped to around 25%, and the operating rate in Yunnan dropped to 45%. The power impact in Xinjiang and Inner Mongolia continues, and given the recent increase in industrial silicon production mainly from northwest China, the supply gap may increase, which is conducive to the upward price. In addition, production costs will also rise in January, it is reported that the price of electricity in the Yili region rose by about 0.1 yuan/KWH, which will drive the cost up by 13,000 yuan/ton, supporting the industrial silicon price. On the demand side, aluminum alloy and silicone demand is stable and good, industrial inventory has dropped to a low level, and just need to purchase demand has been released to push up the price of raw material industrial silicon. Export demand has signs of recovery, South Korea, Japan orders recovered, port industrial silicon prices rose.