Short Supply Of Industrial Silicon 553#, Factories Holding Prices Firm
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Short Supply of Industrial Silicon 553#, Factories Holding Prices Firm
Currently, production of No. 553 industrial silicon has sharply declined nationwide, with only 5 out of 30 specialized factories remaining operational. Sporadic production has started in Yunnan and Henan, while major production areas in Sichuan and Chongqing have largely halted since late 2024. The market exhibits a "low volume, rising price" trend, with mainstream quotes at 10,200–10,500 yuan/ton and actual transactions at 10,200–10,300 yuan/ton ex-factory. Manufacturers in the Southwest are generally reluctant to sell due to low-priced inventory backlogs, uncertainty regarding production resumption during the flood season, and policies restricting non-standard products. Sichuan manufacturers, in particular, are caught in a cycle of low-price stockpiling and reluctance to sell, leading to a disrupted regional pricing system, with some No. 553 quotes even exceeding those of lower-grade Tongyang products.
With an extremely low operating rate on the supply side, manufacturers' tight control over stock and firm pricing strategies are intensifying the supply-demand imbalance. On the demand side, factors such as photovoltaic certification upgrades and non-standard product bans are accelerating the elimination of low-end capacity. In the short term, the market is expected to continue experiencing low supply and weak transactions, but fluctuations in Southwest electricity costs, increased substitution of oxygen-passing processes, and policy enforcement remain key variables to watch. The industry structure may further diverge as cost dynamics shift.
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