For the Quarter Ending March 2025
North America
North America witnessed a dynamic Silicon Metal market in Q1 2025, shaped by a mix of supply-side disruptions, demand from downstream industries, and trade policy shifts. The region’s market remained tight, with logistical challenges and steady industrial demand exerting upward pressure on prices throughout the quarter.
In the United States, Silicon Metal prices showed a continuous increase during the quarter despite facing significant supply disruptions. Severe winter storms impacted major Gulf ports early in the quarter, while production cuts and force majeure declarations by key domestic producers added to the strain. Imports from Brazil, Chile, and Norway remained steady, though Asian supply faced delays.
Demand remained strong, bolstered by the automotive, solar, and semiconductor sectors. Notably, the EV market posted robust growth, alongside increased manufacturing activity and infrastructure-driven aluminum usage. These factors supported a consistent uptrend in prices from the start through the end of Q1. However, when compared to Q4 2024, Q1 2025 saw a quarter-on-quarter price decrease of 13.2%. The price at the end of the quarter settled at USD 2,751/mt CFR Illinois Port, reflecting strong market fundamentals.
Europe
In Q1 2025, the European silicon metal market faced a challenging landscape marked by a steady decline in prices driven by subdued demand and balanced supply. The region saw production adjustments due to maintenance and power constraints, notably at Norwegian and Icelandic facilities, while broader macroeconomic headwinds weighed on downstream industries. Despite stable imports and domestic production, the market remained under pressure due to weak industrial activity, particularly within the photovoltaic and automotive sectors. In Germany, silicon metal prices followed a consistent downward trend throughout the quarter, with modest declines at the start and mid-quarter accelerating toward the end. Demand remained soft, especially from the aluminium alloy and semiconductor sectors, both impacted by slowing EV production and weaker manufacturing performance. Supply conditions were stable, with regular imports from Norway, France, Brazil, and China. However, elevated energy costs and stable inventory levels prevented any price recovery. When compared to Q4 2024, the quarter-on-quarter price increased by 3.5% in Q1 2025. The price of silicon metal stood at USD 2,191/mt CFR Hamburg by the end of the quarter.
APAC
In Q1 2025, the Asia-Pacific (APAC) region witnessed a bearish trend in the silicon metal market, primarily driven by China’s weak supply-demand dynamics. The overall market sentiment remained cautious, as sluggish procurement and abundant inventories exerted downward pressure on prices. China, the leading producer in the region, experienced a continuous price decline throughout the quarter, with values dropping from the start and persisting into the end. When compared to Q4 2024, silicon metal prices fell 12% quarter-on-quarter, closing at USD 1459/mt FOB Shanghai. The decline was largely attributed to high inventory levels, subdued downstream demand, and steady or rising supply from major production hubs like Xinjiang and Inner Mongolia. While operating rates fluctuated by region, national inventories continued to build up, reflecting overcapacity. On the demand front, downstream industries such as polysilicon, semiconductors, and aluminum alloys showed limited buying interest. End users maintained cautious procurement strategies amid global economic uncertainties, further exacerbating the market’s weakness. With no significant rebound in consumption, the overall market outlook for China remains muted in the near term.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the North American silicon metal market experienced a marginal price decrease of 0.4% compared to the previous quarter, reflecting a stable yet cautious market environment. Supply remained moderate, supported by preemptive inventory management and reduced production from Chinese smelters. Freight rate reductions for trans-Pacific shipments also helped stabilize costs, despite logistical challenges caused by weather disruptions and potential labor issues at U.S. ports. The quarter closed with silicon metal prices at USD 2469/MT CFR Illinois Port, highlighting the market's resilience.
In the United States, supply stability was maintained despite Hurricane Helene disrupting quartz mining operations. Preemptive stockpiling by suppliers minimized supply shortages. Demand showed mixed trends, with steady growth in the semiconductor and solar sectors offset by weaker performance in the automotive industry, which faced elevated vehicle prices and borrowing costs. However, automotive demand improved toward the end of the quarter, with a notable 9.8% year-over-year increase in vehicle sales. Additionally, government initiatives supporting renewable energy adoption bolstered demand in the solar panel sector.
Overall, the market displayed a balanced dynamic between supply and demand, underpinned by strategic inventory management and sustained interest from key sectors, positioning it for potential recovery in early 2025.
Europe
In the fourth quarter of 2024, Silicon Metal prices in Europe experienced a marginal decline of 0.6% quarter-over-quarter, reflecting a balanced market driven by stable supply and subdued demand. Energy price reductions, improved renewable energy output, and consistent imports helped maintain a steady supply chain across the region. However, weak industrial performance and economic uncertainties dampened demand in key sectors. In Germany, Silicon Metal prices reached USD 2370/MT CFR Hamburg by the end of the quarter, demonstrating stability amidst mixed market conditions. The photovoltaic industry, driven by innovations like tandem solar technology, provided steady demand, but challenges in other sectors constrained growth. The automotive industry showed contrasting trends, with a slight recovery in traditional vehicle sales offset by a decline in battery-electric vehicle registrations, impacting Silicon Metal consumption. Meanwhile, energy price declines and efficiency improvements supported production stability, although business confidence remained low due to broader economic headwinds. Trade dynamics, including a 2% reduction in freight rates from China, added further downward pressure on prices. Despite these challenges, improvements in wafer production and polysilicon demand indicate potential growth in 2025, suggesting a cautiously optimistic outlook for the German Silicon Metal market.
APAC
In the fourth quarter of 2024, silicon metal prices in the APAC region decreased by 6.2% quarter-over-quarter, reflecting weakening demand and cautious market sentiment. China, the largest contributor to the regional market, experienced mixed trends across various industries. Early in the quarter, the market demonstrated stability, supported by robust export performance and strategic production adjustments in the silicon wafer segment. However, a decline in downstream demand from the polysilicon, PV glass, and aluminum alloy sectors exerted downward pressure on prices. Production dynamics were marked by strategic cuts in regions like Xinjiang, Yunnan, and Sichuan due to high electricity costs during the dry season and seasonal maintenance activities. Despite these reductions, new capacities in Inner Mongolia and other areas led to a yearly production increase of 28.9%. By the end of the quarter, production levels declined by 18.1% month-over-month. Demand from the solar, semiconductor, and battery sectors showed some resilience early in the quarter but weakened as downstream industries reduced production and limited stockpiling activity. By the end of the quarter, Silicon Metal (5-5-3) FOB Shanghai prices stood at USD 1663/MT, reflecting a subdued market outlook and continued pressure on pricing.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North America Region witnessed a stable pricing environment for Silicon Metal, characterized by consistent market conditions. One significant factor influencing market prices during this quarter was the equilibrium between supply and demand. The stable prices were primarily driven by moderate demand from various industries and stable supply chains. Additionally, the clean energy initiatives and the expansion of utility-scale clean power projects contributed to the steady demand for Silicon Metal in the region.
In the USA, which experienced the most significant price changes, the market demonstrated resilience amid fluctuations in the broader semiconductor industry. Despite challenges in the manufacturing sector, the demand for Silicon Metal remained moderate, particularly in the solar energy sector. The overall trends in pricing remained steady, with no change from the previous quarter and a negligible difference between the first and second half of the quarter.
The quarter ended with prices for Silicon Metal (4-4-1) CFR Illinois Port in the USA settling at USD 2451/MT, reflecting the stable pricing environment that characterized the entire quarter.
Asia Pacific
The Silicon Metal market in the APAC region witnessed a challenging quarter in Q3 2024, marked by decreasing prices and a negative sentiment. Several factors contributed to this downward trend, including subdued demand from key industries such as steel and construction, oversupply concerns, and adverse weather conditions impacting production and consumption. China, in particular, experienced the most significant price changes, with prices declining consistently throughout the quarter. The silicon metal market is further impacted by high inventories, contributing to the pessimistic quarter. These price fluctuations were influenced by an imbalance between supply and demand, leading to reduced prices to stimulate demand. The quarter saw a notable 5% decrease from the previous quarter, indicative of the ongoing market challenges. Additionally, the quarter witnessed a 4% difference between the first and second half of Q3. The quarter-ending price of USD 1918/MT of Silicon Metal (4-4-1) FOB Shanghai in China reflects the overall decreasing trend in pricing for Silicon Metal in the region.
Europe
In Q3 2024, the European region experienced a downturn in Silicon Metal prices. This decline was influenced by various factors, including oversupply in the global market, weakened economic activities impacting demand, and fluctuations in raw material costs. The stability in prices from the previous quarter, with a marginal change, indicated a persistent trend of subdued market conditions. Germany, a key player in the region, saw the most substantial price changes, with a negative 1% variance between the first and second half of the quarter. This fluctuation in prices within the country underscored the challenging market dynamics at play. Continued growth from the renewable energy sector has provided support for silicon demand in this quarter. The quarter-ending price for Silicon Metal (4-4-1) CFR Hamburg in Germany stood at USD 2365/MT, reflecting the overall decreasing sentiment in the market. Despite efforts to balance supply and demand, the pricing environment in Q3 2024 for Silicon Metal in Europe leaned towards a negative trajectory, driven by a confluence of internal and external market factors.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Silicon Metal market experienced a period of stability. This equilibrium was largely influenced by balanced demand and supply dynamics, reflecting a consistent market sentiment. Key factors contributing to this stability included increased production capacities in significant regions, which helped alleviate any potential supply shortages. Additionally, robust demand from the automotive and solar panel industries supported steady pricing, while global logistics disruptions had minimal impact on the market's stability.
Focusing on the USA, the market observed the maximum price changes within the region. Throughout the quarter, the Silicon Metal price trend showcased negligible fluctuation, demonstrating a stable environment. Seasonality had a relatively muted impact, and any correlation in price changes primarily stemmed from consistent industrial demand. Comparing year-over-year data, there was a significant rise driven by enhanced economic activities and technological advancements.
However, from the previous quarter in 2024, the price change was a modest, underscoring the stabilizing effect of synchronized supply and demand forces. Examining the first and second halves of the quarter, there was no notable price difference, reinforcing the quarter's stability at 0% price change. By the end of Q2 2024, the price of Silicon Metal (4-4-1) CFR Illinois Port concluded at USD 2454/MT. This consistent pricing trajectory throughout the quarter suggests a stable and positive pricing environment, supported by underlying market fundamentals and steady demand in key industrial sectors.
Asia-Pacific
In Q2 2024, the Silicon Metal market in the APAC region experienced a marked decline in prices, driven by a confluence of factors that collectively dampened market sentiment. The oversupply situation precipitated by increased production capacities, coupled with sluggish demand recovery post-pandemic, played pivotal roles in shaping the pricing landscape. The burgeoning stockpiles, especially in key industrial sectors like automotive and electronics, exacerbated the downward pressure on prices. Additionally, heightened price negotiations among suppliers and buyers, amidst weak manufacturing data, further contributed to the bearish pricing trends. Focusing on China, which experienced the most significant price changes, the overall trends showcased a clear seasonality effect where the onset of the rainy season in production regions led to increased output. This oversupply scenario, combined with tepid demand from the downstream sectors, particularly the photovoltaic and aluminium industries, resulted in sustained price declines. The year-on-year comparison revealed a decline from the same quarter last year, underscoring a substantial downtrend. Furthermore, the quarter-on-quarter analysis depicted a decrease from Q1 2024, highlighting the persistent weakness in market conditions. The price comparison between the first and second halves of the quarter indicated a further 1% decline, reflecting consistent negative market sentiment. The quarter concluded with Silicon Metal (4-4-1) FOB Shanghai recorded at USD 2058/MT, signifying a challenging pricing environment dominated by negative trends. Thus, the pricing context for Silicon Metal in Q2 2024 has been unequivocally negative, characterized by an oversupply, lacklustre demand, and persistent downward corrections.
Europe
In Q2 2024, silicon metal prices in Europe exhibited notable stability, reflecting a balanced interplay of supply and demand dynamics. Several factors contributed to this stability, including consistent industrial activity, stable energy costs, and a relatively calm geopolitical landscape, which collectively supported a steady pricing environment. The European market has been characterized by moderate production levels and uninterrupted supply chains, ensuring that fluctuations in global trade did not disrupt the local silicon metal market. Focusing on Germany, which experienced the most pronounced price changes, the overall trend remained stable throughout the quarter. Key drivers included sustained demand from the automotive and construction sectors, despite a decline in electric vehicle sales. Seasonality did not significantly impact prices, and the correlation between supply consistency and industrial demand maintained a balanced market. Compared to the same quarter last year, silicon metal prices in Germany showcasing robust year-on-year growth. However, compared to the previous quarter in 2024, prices saw a slight decrease highlighting relative stability. Notably, the price comparison between the first and second half of the quarter showed no change, reinforcing the stable market sentiment. The quarter concluded with silicon metal (4-4-1) CFR Hamburg in Germany priced at USD 2369/MT. This reflects a generally stable pricing environment, underscoring the resilient demand and balanced supply conditions that characterized the European silicon metal market in Q2 2024. The stability seen in this quarter suggests a positive outlook for the subsequent periods, contingent on the ongoing equilibrium in market dynamics.
