Market Information Silicon Metal
In September 2025, silicon prices in East China remained relatively stable, with mainstream quotations for 553# and 421# grades moving within a narrow range. Market sentiment remained cautious, as mixed signals from supply and demand shaped trading activity.
On the supply side, national silicon output continued to grow modestly, driven by additional operating furnaces in Xinjiang. In contrast, production in the southwest region is expected to decline during the dry season, due to higher power costs and limited hydropower availability.
While production costs in Xinjiang remain low, those in the southwest are gradually rising. Efficiency improvements from large-scale furnaces have slightly mitigated cost pressures, but energy consumption and operational expenses continue to weigh on profit margins.
On the demand side, a slowdown in polysilicon output combined with persistent overcapacity in the photovoltaic (PV) supply chain has limited downstream buying interest, keeping overall demand subdued.
Looking ahead, the silicon market faces potential risks, including weaker-than-expected PV installations, a faster-than-anticipated production recovery in Xinjiang, and uncertain international trade policies. In the coming weeks, the balance between regional supply and seasonal demand will remain the primary driver of price stability and market trends.