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Silicon Price Trend and Forecast
Get the latest insights on price movement and trend analysis of Silicon in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Silicon Price Trend for October-December of 2023
In the Asian market, particularly in China, the silicon price trend in the fourth quarter of 2023 displayed a complex pattern. Initially, prices were under pressure due to an overabundance in supply and a subdued demand from downstream industries like polysilicon, organic silicon, and aluminium alloys.
This led to a bearish market sentiment, especially as polysilicon prices dipped below production costs, prompting some smaller factories to cut back on production. The cancellation of futures market warehouse receipts in November exacerbated this trend, as a substantial supply influx into the spot market dampened price prospects.
However, by December, the onset of the dry season in southern provinces like Sichuan and Yunnan resulted in reduced production, slightly tilting the supply-demand balance. Coupled with solid financial support for prices and environmental production reductions in Xinjiang, the market saw a modest price rebound. This fluctuation underscores the sensitivity of the silicon market to regional production changes and broader economic conditions.
In Europe, the silicon price trend mirrored global trend due to interconnected supply chains and shared economic factors. The shift towards increased production in countries with hydropower advantages, like Brazil, Norway, and Iceland, impacted European markets, though the exact extent depended on the region's reliance on imports versus domestic production. European silicon prices were also influenced by the global trend of expanding downstream polysilicon demand, which provided some support against the downward price pressures experienced elsewhere.
The North American price trend in the fourth quarter of 2023 aligned with the global trend to some extent, with regional specifics playing a role. Factors such as local production rates, import-export dynamics, and the state of downstream industries were key determinants. The broader shift in the global silicon market, with a decrease in exports from major producers and an increase in domestic consumption in countries like China, led to adjustments in North American supply chains.
Additionally, environmental and logistical factors unique to the region, similar to the issues faced in the Panama Canal for sodium chlorite, played a role in shaping the market.
According to Procurement Resource, the global silicon price trend is expected to show significant whirlwind in terms of fluctuations. Throughout 2024, silicon price trend will exhibit considerable fluctuation.
Silicon Price Trend for the July-September of 2023
The silicon market in the third quarter exhibited stability only in its initial months as its price trend were driven by supportive demand. However, the situation quickly turned unfavorable as inventories expanded while sluggish downstream sector demand hampered the overall market sentiments.
In addition to this, the consumer sector also lowered its appetite and its ability to place substantial orders amid the economic decline in Asia Pacific countries. Additionally, the monsoon season and heavy rainfall in many parts of China disrupted the construction sector, presenting a further challenge to silicon prices.
The silicon market in Europe experienced a bearish trajectory during the third quarter of 2023. The significant contributor in this declining trajectory of the silicon prices was the rising inflation rates and a consistent decline in end-user demand, particularly from the construction sector. The surge in inventories, coupled with high production rates, surpassed the demand, leading to a decline in silicon prices.
In North America, the third quarter suffered from a downturn in the economy, diminishing downstream demand, and debt crisis that significantly influenced the negative trajectory of silicon prices. The third quarter of 2023 continued its declining trajectory on account of falling construction and related industrial sectors. In all, the poor demand led to a continuous rise in stockpiles in the region, negatively impacting overall trading sentiments and silicon prices.
According to Procurement Resource, the price trend of silicon are estimated to continue its declining trajectory as the demand from the downstream industries seems weak.
Silicon Price Trend for the First Half of 2023
Silicon observed declining price trend throughout the first half of the year 2023. The spot prices of Silicon started with an average of around 2731 USD/MT in January’23 and closed the second quarter with an average of about 1946 USD/MT registering an average decline was about 28%. The primary reason behind these sluggish market trend was a decrease in the downstream demands from steel and smelting industries.
These industries had reserved stocks in advance, but they couldn’t be used because of the industrial shutdown by the Chinese Government due to Covid 19 lockdown. In early 2023 as the industries started reviving, silicon supplies increased, but demands didn’t as the consuming industries were still trying to utilize their stocked supplies. So, overall trend remained sullen in the Asian Silicon market.
European Silicon market almost replicated the trend seen in its Asian counterpart. Prices remained on a declining trail because of decreased demands from the manufacturing sector. In Europe, the economic recession hurdled all the market fundamentals. Because of the severe cost of living crisis, buying behavior changed significantly, especially for the construction sector and heavy metal industries. Demands, though, showed some positive signals but could not revive significantly, and the Silicon prices kept falling throughout the said period.
In the North American region, Silicon price trend continued their journey downhill in the first two quarters of 2023. The ample availability of inventories, coupled with improved supplies and sullen demands, kept the Silicon prices dampened. The rise in interest rates because of the collapse of two major US banks and a global economic slowdown all contributed to keeping the consumption sector sluggish and the Silicon market down. Overall, bearish market sentiments were observed.
According to Procurement Resource, Silicon market trend are expected to continue fluctuating in the upcoming months as the demand projections seem muted, given the current economic climate.
For the Q4 of 2022
Given the power rationing norms and covid-mandated shutdowns, the industrial output of China suffered greatly. The reduced operating rates amid sluggish demands caused silicon prices to fall in the Chinese domestic market. Even with the opening of ports and positive trade movements, the downstream demand did not rebound greatly. Further, the reducing upstream costs aided the downfall of silicon price trend during the fourth quarter of 2022.
Similar sluggish price trend were seen for Silicon in European markets. The economic backlash unleashed owing to the Russia-Ukraine war led to an acute cost-of-living crisis, which altered consumption patterns. Even after the trade normalized, the demand did not pick up, considering the low consumer confidence in the market.
The US domestic market mimicked the global price trend for Silicon. The trend kept almost stagnant throughout the fourth quarter, given the overflowing inventories and bearish demands. Furthermore, the labor strikes and falling upstream costs aided the fall in silicon prices.
According to Procurement Recourse, the price trend for Silicon are expected to remain volatile in the coming quarter, given the current uncertainties in the market supply-demand dynamics.
For the Q1, Q2 and Q3 of 2022
Silicon prices in China rose rapidly in the first two weeks of March before plummeting due to weakening market confidence. Prices of Silicone DMC steadied towards the end of March, while prices of Silicon metal did not follow the trend. Silicon metal prices continued to fall sharply, averaging 3540-3460 USD/MT.
Market demand for silicon metal was low, with only a few purchase requests received. Many small and medium-sized silicon factories increased their willingness to sell due to the sharp drop in revenues. Downstream industries were also constantly changing their production rhythms because of lower demand and the impediment of raw material delivery.
The declining price trend continued in the second quarter. Due to weak demand and prolonged procurement from the downstream industries, silicon metal prices were sluggish. The prices were also affected as the industries halted production owing to the covid related restrictions.
The factories resumed production after removing restrictions, but the Silicon prices remained on the lower end of the scale. As the prices of the raw materials stabilized and the cost of production improved in the third quarter, the prices were still low owing to the cautious buying activity of consumers, given the current grim market outlook. The silicon metal price averaged 2530 USD/MT at the end of the third quarter.
As a result of the Russia-Ukraine war, prices of materials increased. Silicon prices rose in January due to their shortage in Europe. Since Russia is the world's second-largest silicon manufacturer after China, its invasion of Ukraine resulted in the suspension of supplies. Sanctions on Russia imposed by the European buyers caused them to build stocks from other countries.
Silicon prices continued an upward trend in the second quarter due to rising European electricity and energy prices. However, as the demand for Russian Silicon continued to decrease, the segment became overstocked, and prices fell.
This price decline continued in the third quarter as the market's double-digit inflation and wait-and-see attitude heavily impacted the prices. The manufacturers could not pass the high costs to the consumers fearing demand destruction; hence their profits declined. The market remained sluggish, with the silicon prices averaging 3115 USD/MT towards the end of Q3.
High prices of upstream materials like silica, pet coke, soft coal, and charcoal, along with rising electricity rates, resulted in an increase in Silicon prices in North America in the first quarter. These high prices continued in the second quarter. The increasing inflationary pressures amid supply constraints, complex logistics and labour shortages heavily impacted the price trend.
Towards the end of Q2, the prices began to decline owing to negative market sentiments. The higher quotations by the manufacturers to cushion their profits led to muted market transactions. The Silicon prices averaged 3020 USD/MT toward the end of Q3.
Procurement Resource provides latest prices of Silicon. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Silicon is a chemical element having atomic number 14. This crystalline solid is hard and brittle in nature and has a blue-grey metallic lustre. It is found in group 14 of the periodic table and its oxides form a family of anions called as silicate. Silicon, also known as industrial silicon, contains 98.5% or more of silicon dioxide (SiO2) and is prepared by melting quartzite and other materials.
It is most commonly used as a basic industrial raw material to produce organic and polycrystalline silicon. Based on the contents of the three main impurities, viz. iron, aluminum and calcium in the Silicon, it can be categorised into different grades like 553, 441, etc.
|Organic silicon, Polycrystalline silicon, Aerospace and aviation industry, Electronics, Organic chemicals, Smelting, Thermal insulation refractories
|Zhejiang Kaihua Yuantong Silicon Industry Co., Ltd., Zhejiang Zhongcheng Silicon Co., Ltd., Ferroglobe PLC
|Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
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In order to produce Silicon, quartzite and other materials are melted and processed to obtain the desired result with 98.5% or more silicon dioxide (SiO2).
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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Phone:+1 307 363 1045
Phone: +91 1203185500
Phone: +44 7537 132103