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.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has been positive for Silicon Metal pricing in the North America region, particularly in the United States. Various factors have influenced market prices during this period. One significant factor is the decline in steel production, which has led to a tightening of the steel supply. This reduction in supply has contributed to stability in Silicon Metal prices. Additionally, increased demand for industrial fabrication and infrastructure investment has supported the growth of the Silicon Metal market.
The pricing trends in the US spot market have displayed consistency and stability. The market has seen a modest resurgence in the scrap market, driven by increased demand, which has further supported the rise in Silicon Metal prices. Despite some economic uncertainty, buyers have approached the market cautiously, anticipating potential price increases.
In terms of seasonality, the arrival of summer has contributed to an expected recovery in demand, which is likely to drive prices upward. Overall, the pricing environment for Silicon Metal has been positive, with prices showing an upward trend. In the United States, there has been an increase in Silicon Metal prices compared to the previous quarter in 2024. Additionally, there has been an increase in prices between the first and second half of the quarter.
Asia-Pacific
The Silicon Metal market in the APAC region experienced an overall positive pricing environment in Q1 2024. The market witnessed a significant increase in prices compared to the same quarter last year. However, there was a positive growth trend from the previous quarter in 2024. Several factors influenced the market prices during this quarter. Strong demand from the downstream industries, particularly in the automotive and construction sectors, played a crucial role in driving up prices. The improving economic conditions in the region also contributed to the positive market sentiment. Additionally, supply constraints and production disruptions in some countries further supported the upward price trend. China, the largest producer and consumer of Silicon Metal in the region, experienced the maximum price changes. The market in China demonstrated overall stability with marginal price revisions due to the unbalanced demand-supply gap. While some traders faced difficulties in procurements, others dealt with high inventories. The Chinese metal market showed a complex situation, with some manufacturers and consumers cutting their production due to issues like lack of raw material supplies and low consumption rates.
Europe
The Silicon Metal market in Europe experienced a positive pricing environment in Q1 2024, with prices showing an overall increasing trend. Several factors influenced market prices during this period. The European Union's push for environmentally friendly steel production increased concerns among steel manufacturers, leading to a rise in Silicon Metal prices. Additionally, manufacturers called for lower costs of renewable energy sources to offset rising electricity expenses, contributing to a positive pricing sentiment. In Germany, the pricing dynamics for Silicon Metal showed significant fluctuations. Prices remained steady in the local market during the last week of February, despite concerns about the steel industry and the deteriorating economic situation. However, prices declined slightly in the third week of February due to decreased usage of Silicon Metal by the downstream construction sector. Overall, the pricing trends for Silicon Metal in Q1 2024 exhibited a positive sentiment. There was an increase in prices compared to the previous quarter, and a 1% increase in prices between the first and second half of the quarter. The increasing prices reflect a growing demand for Silicon Metal and positive market conditions in Europe. However, it is important to note that these price changes were influenced by various factors and may vary in different countries within the region.
