Core Viewpoint - The industrial silicon spot prices have declined recently, with fluctuations in the market and limited improvement in the fundamentals, leading to a cooling market sentiment and price drop [1][2]. Price Trends - The main contract price for industrial silicon dropped from 8750 CNY/ton to 8700 CNY/ton, a decrease of 0.57% during the week of July 31 to August 6, 2025. The national average price is 9196 CNY/ton, down by 182 CNY/ton [1]. - Specific grades of industrial silicon saw the following prices: 553 at 8764 CNY/ton (down 438 CNY/ton), 441 at 9174 CNY/ton (down 178 CNY/ton), and 421 at 9875 CNY/ton (down 97 CNY/ton) [1][3]. - The FOB price decreased by 30 USD/ton [1]. Supply and Demand Dynamics - On the supply side, production in northern regions remains stable, with a slight increase in large factory operations. Southern regions are experiencing increased output due to the rainy season and new capacity coming online [1]. - Demand from downstream sectors is slightly increasing, with higher operating rates in organic silicon monomer plants and some recovery plans in multi-crystalline silicon production lines. Overall, the demand from the three major downstream sectors for industrial silicon is expected to increase slightly [1][2]. Market Sentiment - Despite the slight increase in demand, the overall market sentiment is cooling, and the industry is facing pressure on inventory consumption, making price increases difficult. The market is expected to remain in a range-bound fluctuation [2].

Core Viewpoint - Industrial silicon futures experienced a rapid increase, reaching a peak of 7830.0 yuan, with a current price of 7690.0 yuan, reflecting a rise of 2.26% [1] Group 1: Market Analysis - Haizheng Futures indicates that the industrial silicon market is showing signs of stabilization, although the fundamental factors do not support a price reversal due to increased production from Xinjiang and the southwest regions, leading to a rise in output [1] - Newhu Futures expects the industrial silicon main contract to maintain a bottom oscillation pattern, as the current demand from downstream sectors remains insufficient, resulting in a weak trading atmosphere [1] Group 2: Supply and Demand Dynamics - The demand for aluminum alloys shows resilience, and the operating rate of organic silicon is recovering, which has led to a decrease in high inventory levels, primarily through warehouse receipts [1] - Despite the ongoing consumption of warehouse receipts, the overall inventory remains high, and supply is expected to continue increasing, while demand growth is limited, making sustained inventory reduction unlikely [1] Group 3: Price Outlook - The industrial silicon market is characterized by high inventory levels and an oversupply expectation, with the current market conditions leading to a weak maintenance of spot prices [1] - The overall market sentiment is leaning towards bearishness, with cost support remaining at lower levels, suggesting that the main contract will likely oscillate at the bottom, with recommendations to short on rebounds [1]

Report Industry Investment Rating No relevant content provided Core View of the Report - The current demand for industrial silicon has not improved, and the inventory has not been effectively digested. In the short term, the silicon price will continue to fluctuate weakly [2] Summary by Related Catalogs Market Conditions - Yesterday, the overall weak situation of industrial silicon spot prices remained unchanged. Downstream buyers mostly purchased on demand, and there was no new demand. Currently, the price of East China oxygenated 553 silicon is between 8,700 - 9,100 yuan/ton, and that of East China 421 silicon is between 9,600 - 10,100 yuan/ton. On the futures side, the closing price of the main contract si2507 of industrial silicon futures yesterday was 8,130, a decrease of 1.87%. The intraday trading volume was 16,616 lots, with a total of 155,000 lots and a turnover of 8.519 billion yuan [1] Supply Side - Recently, the prices of silica and silicon coal in the raw material segment have weakened, reducing the production cost of manufacturers. With the approaching of the wet season and the resumption of production of previously shut - down manufacturers, the output may increase slightly. Traders are inquiring about goods, and spot - futures traders are actively quoting. Some low - priced goods have had small - volume transactions. The production in the Gansu production area is relatively stable, and the output of 97 - silicon continues to remain low. The short - term start - up is difficult to improve. The operating rate of medium - frequency furnaces is low, and the prices are still at a low level, making it difficult for manufacturers to resume production [1] Demand Side - The polysilicon market continues to operate weakly. Currently, the terminal demand is significantly weak, and downstream procurement is becoming more cautious. The weekly trading volume remains flat, and the market stalemate remains unchanged. The price of organic silicon is temporarily stable. After some large monomer manufacturers made a tentative price increase before the festival, they sold goods with a small discount, and the number of inquiries has increased. The price of aluminum alloy ingots fluctuates. Large manufacturers have slightly reduced their inventories, and enterprises with low inventories are more willing to hold prices, making the market circulation slightly looser [1] Inventory - On May 19, the industrial silicon warehouse receipt inventory was 66,097 lots, a single - day decrease of 287 lots. The total inventory of industrial silicon remains at a high level [1]