Silicon Metal Prices Fall in China and U.S.; Long-Term Outlook Remains Positive

In the last week of August, the Silicon Metal prices witnessed decline in China and the USA as demand decreased in key regions. Despite a drop in prices towards the end of August, the general view on the Silicon Metal market remains upbeat in the US.

For the week ending on August 30th, the price of Silicon Metal in China fell by 1.5%, indicating a drop in demand from downstream industries. The photovoltaic sector, a key consumer of Silicon Metal, showed signs of weakness. Inverter exports in July 2024 witnessed a 10.5% month-on-month decrease. The January to July 2024 period saw cumulative exports decreasing by 9% compared to the same period last year. The domestic photovoltaic glass market stabilized temporarily at August's end, but significant inventory pressures persist, with further price declines expected. This downturn is evident in the performance of major industry players, with leading photovoltaic company Tongwei reporting a 40.87% decrease in operating revenue for the first half of 2024. Adding to the market's woes, several leading ingot pulling enterprises plan to reduce production in September, potentially leading to a significant decline in silicon wafer production.

The U.S. Silicon Metal market saw marginal price decreases despite positive sentiment in the downstream sector. The Biden administration's recent finalization of plans to expand solar energy development on federal lands across 11 western states has bolstered the renewable energy sector. The U.S. is projected to add 62.8 GW of new utility-scale electric-generating capacity this year, underscoring the country's commitment to a greener economy. Notable industry developments in the Silicon Metal sector include Heliene's partnership with Premier Energies to produce crystalline silicon photovoltaic cells in Minnesota, supported by a multi-year contract with NorSun for silicon wafer supply. Additionally, Gensol Engineering has established a U.S. subsidiary, Scorpius Trackers Inc., aiming to supply over 2,000 MW of solar trackers annually by 2028 to key renewable energy markets. On the other hand, South Korea's Samsung SDI and General Motors have finalized an agreement to invest approximately $3.5 billion in a joint electric vehicle battery factory in Indiana. The plant will have an annual production capacity of 27 GWh, highlighting the growing demand for Silicon Metal in the EV battery sector.

Despite encountering some challenges in the short term, the Silicon Metal market is expected to maintain a positive trajectory over the long haul, bolstered by the continuous shift towards sustainable energy solutions. According to ChemAnalyst, price stabilization in the Silicon Metal market is anticipated shortly.