Core Viewpoint - The industrial silicon futures market is experiencing a downward trend due to weakened cost support and mixed supply-demand dynamics, with prices falling below 9000 yuan/ton [1][2][4]. Supply Side Analysis - The main contradiction in the industrial silicon market is the continuous increase in supply against weak demand expectations. The southwestern region is expected to reduce production due to the upcoming dry season, while the northwestern region anticipates increased production [2][3]. - From January to August this year, the total industrial silicon output in China reached 2.6 million tons, with Xinjiang contributing 1.37 million tons (53%) and the southwestern region contributing 370,000 tons (14%) [2]. - The southwestern region's production is expected to decrease as smelting electricity prices are set to rise after the wet season ends, while the northwestern region's production may increase due to stable coal electricity prices [2][3]. Demand Side Analysis - Currently, industrial silicon demand is stable during the traditional peak season, but uncertainties arise from the polysilicon market, which may see new capacity ramp-up and some production cuts [3]. - If the polysilicon industry implements "production limits and sales control" measures effectively, industrial silicon demand could significantly decline [3]. - Domestic demand for organic silicon and aluminum alloys is showing marginal improvement, with notable export performance in aluminum alloys. In August, China's industrial silicon exports reached 76,600 tons, a month-on-month increase of 3.56% and a year-on-year increase of 18.30% [3]. Inventory and Market Outlook - Industrial silicon inventory has shown a slight increase, with current spot inventory at 445,000 tons, reflecting a week-on-week increase of 0.54% [3]. - The overall market is expected to remain weak, with continuous production increases from major manufacturers potentially leading to supply growth, while polysilicon's limited production expectations may weaken industrial silicon demand [3][4].