Silicon Metal Prices Diverge: US Stable as China Sees Decline Amid Market Shifts
Silicon Metal Prices Diverge: US Stable as China Sees Decline Amid Market Shifts

Silicon Metal Prices Diverge: US Stable as China Sees Decline Amid Market Shifts

  • 01-Oct-2024 4:41 PM
  • Journalist: Shiba Teramoto

Silicon Metal prices in the United States maintained stability through the final week of September, while the Chinese market experienced a downturn. This contrasting scenario highlights regional factors affecting the global Silicon Metal industry, as adequate supply met moderate demand in the US while oversupply conditions prevailed in China.

During the week leading up to September 27th, the price of Silicon Metal in China saw a slight decrease of 0.5%. The market is witnessing intense competition for low-priced module bids in large procurement projects, causing a minor reduction in the prices set by major companies, indicating a continued downward trend. Silicon wafer prices also experienced a drop towards the week's end. Increased inventory levels prompted some smaller companies to exit Silicon Metal transactions prematurely at the month's close. Additionally, a deceleration in China's solar installation rates is affecting Silicon Metal demand, while pre-National Day stockpiling by traders has played a role in the subtle price dip observed as September concluded.

In the USA, the prices of Silicon Metal witnessed minimal fluctuation and remained stable as compared to the previous week. A major development includes California govt’s decision to exclude schools and farms from using their own solar energy production. This can further lead to a fall in demand from this area. In recent years, California's position has changed significantly within the U.S. rooftop solar industry affecting the supply chain dynamics of Silicon Metal. Once considered the pinnacle of the market, the state has now adopted regulations that are viewed as highly favorable to investor-owned utilities and less beneficial to consumers. Additionally, Ameresco, a company specializing in clean technology integration, has successfully finished building Utah's inaugural floating solar installation. In collaboration with D3Energy, a floating photovoltaic expert, they have established a solar array with a capacity of 587.5 kilowatts. This has contributed to Silicon Metal demand in the region.

An indefinite strike by numerous dockworkers at various American ports could potentially lead to substantial trade interruptions and economic disturbances. This industrial action comes at a critical time, just before the presidential elections and amidst the peak season for holiday shopping, raising concerns about its impact on these events. This can affect the supply chain for Silicon Metal in the region.

With the market gearing up for a surge in activity, it's anticipated that Silicon Metal prices will be considerably affected. The imminent peak consumption period, coupled with current economic stimulus efforts, suggests a promising future for the Silicon Metal market. ChemAnalyst projects a steady growth in the Silicon Metal market, with an expectation of a sustained upward price trajectory in the forthcoming weeks.

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