onlinepokerbot| Industrial silicon prices are stable: Supply and demand balance and macro expectations affect the market

News summary

2024onlinepokerbot.5.17-5.23 The average price of China's industrial silicon spot market fell slightly by 0.2%, and the price was stable. Costs are expected to fall during the wet season, and downstream organosilicon and polysilicon are overhauled, resulting in reduced demand. Macroeconomic policies and environmental maintenance are market-driving factors. It is recommended to wait and see cautiously in the short term and make big purchases.

Newsletter text

[Industrial silicon spot prices are fine-tuned, and the market looks flat] At the beginning of the week, the industrial silicon spot market remained stable. As of May 23, the quoted price in China's industrial silicon market has been slightly lowered, with an average price of 13335 yuan/ton, a drop of 27 yuan/ton from the previous week, a decrease of 0.2%. This week, the main contract of industrial silicon futures once hit a new high in several weeks, but eventually fell slightly. The strong performance of futures pushed the sentiment in the spot market to recover, but the spot transaction price remained relatively stable, with some concessions being made. In terms of cost and profit analysis, industrial silicon production costs decreased slightly this week due to the reduction in power supply costs. Costs are expected to continue to decline in the coming week and profit expectations remain stable. From the perspective of downstream demand, maintenance of polysilicon plants is expected to reduce the supply of silicon materials, and demand in the organosilicon field remains rigid. Guangxi Regional GovernmentonlinepokerbotThe intervention of the rod factory may prompt the rod factory to resume production, but due to insufficient terminal demand, the demand for raw materials is not strong. Current macroeconomic expectations have released positive signals, the valuation of the industrial silicon market is at a low level, and capital allocation is active. However, the contradiction between supply and demand sides focuses on cost valuation and warehouse receipt pressure. The release of production capacity is expected to bring about a slight upward shift in costs, while reduced demand may limit price upside. Taking into account macro factors, policy impacts, environmental maintenance and possible emergencies during the wet season, the current fundamental driving force is relatively limited. Market strategy recommends being cautious in the short term and waiting for the right time to operate. For traders, it is recommended to pay attention to the changes in monthly spreads and the arbitrage opportunities of far-month contracts 11-12 to capture potential market profits.