Silicon metal prices stabilize amid Chinese production cuts and EU policy shift
Silicon metal prices remained flat in late October as the market balanced high production costs against weak demand and anticipated supply constraints in China.
Silicon metal prices in China have held within a narrow range throughout late October. Producers have maintained price floors due to firm energy and raw material costs, while industrial buyers in the aluminum and silicone sectors have limited their purchasing activity due to lackluster downstream demand.
Market participants are currently monitoring the seasonal production curtailments in Southwest China. As the hydroelectric wet season concludes, increased power tariffs historically force smaller furnaces to idle. Analysts suggest this supply contraction may tighten market conditions in the fourth quarter, potentially providing upward pressure on prices.
Externally, the European Commission’s decision to repeal anti-dumping duties on Chinese solar glass, effective October 22, 2026, serves as a significant regulatory shift. By reducing landed costs for European solar module manufacturers, the policy change is expected to support increased module production, potentially bolstering demand for polysilicon and silicon metal in early 2027.