As the new year unfolds, Silicon Metal prices continue to witness divergent trends in Asia and North America. In China prices fell marginally, continuing the previous trend whereas Germany and the USA witnessed price rises. The price rise of 0.5% in Germany and 1% in the USA during mid-January was fueled by escalating supply chain disruptions amidst significant shipping delays and rising transportation costs, which tightened the supply of Silicon Metal across these regions. The combination of these supply difficulties and a boost in industrial activities has exerted upward pressure on prices, prompting businesses to re-evaluate their budgets.

In China, Silicon Metal prices fell by 0.3% in the week ending January 17. Weekly production in key regions, including Xinjiang and northwest China, remained stable, while Yunnan and Sichuan experienced notable declines. Yunnan saw production cuts and a decline in operating rates, with further reductions expected by month’s end. Sichuan’s production was completely halted, contributing to a tightened supply.

Demand is low as pre-holiday stockpiling ends. Downstream businesses are reducing raw material purchases. With the Chinese New Year nearing, market activity is likely to slow, possibly stabilizing prices.

Looking ahead, it is anticipated that Silicon Metal prices could see slight increases in China as downstream restocking demand recovers. However, price movements will depend on production adjustments and maintenance schedules among medium and small enterprises, particularly in Yunnan and Sichuan.

In the U.S., the ongoing strain on power grids, driven by AI-powered data centers, has added to production costs of energy-intensive materials like Silicon Metal. Data centers, especially in areas like Northern Virginia, are pushing the limits of the electrical infrastructure, creating distorted power patterns that raise operational expenses. As industries rely more heavily on Silicon Metal for automotive, aerospace, and electronics, demand has skyrocketed despite supply uncertainties.

The global semiconductor boom, partially driven by AI and advanced packaging initiatives, is also a critical factor. The U.S. has invested heavily in domestic semiconductor ecosystems, further boosting the need for high-quality Silicon Metal. Analysts predict this demand will persist as major players like Foxconn and TSMC expand operations.

ChemAnalyst sees strong growth ahead for the Silicon Metal market. However, supply chain issues from major exporters like Brazil and Norway could cause shortages. Experts agree that Silicon Metal prices will increase due to higher energy costs and supply problems. As Europe and the U.S. focus on enhancing production and distribution, sustained demand from key industries is expected to drive price increases.