Silicon metal prices remained largely stable across global regions in October, supported by resilient demand and steady raw material costs. In China, rising production led to a modest inventory build, while wafer manufacturers showed cautious optimism amid fluctuating polysilicon dynamics. Despite stable pricing in Europe, concerns over low-cost imports prompted calls for EU intervention, and Ferroglobe’s planned production halt signals tighter supply ahead.
Key Highlights:
China
Silicon metal prices remained stable across all regions during the week. In Xinjiang, production activity for silicon metal continued to climb throughout October, contributing to a nationwide uptick in supply. Through October 9, the overall social inventory of silicon metal in major areas totaled 545,000 metric tons, up 2,000 metric tons from readings taken before the National Day holiday.
Silicon coal prices, which are one of the most important feedstocks used for manufacturing silicon metal, were steady region-wise this week. Supply side, coal washing plants held on to a sales-oriented production strategy, with silicon coal supply remaining constant week-to-week.
On the demand side, wafer makers have shown bullish views on prices of late, although raw material cost end-of-month adjustments may determine actual transaction quantities. Polysilicon stocks increased slightly, and order confirmation speeds have slowed. Wafer companies are taking a wait-and-see and cautious approach to new purchases, which may dictate near-term silicon metal demand.
Silicon metal production is anticipated to increase month-to-month in October, as production schedules throughout the industry continue to grow. Still, the industry is stuck in a struggle between increasing supply pressure and weak demand. In the short term, domestic silicon metal prices will tend to trade in a tight band, mirroring this continuing supply-demand mismatch.
Germany
Silicon metal prices in Germany remained level week-to-week in mid-October, demonstrating no notable swings. Due to continued market uncertainty, domestic European producers are actively petitioning the European Union for safeguard action against the dumping of low-cost silicon metal imports that are exerting downward pressure on the regional market.
In a notable development, top European producer Ferroglobe has issued intentions to idle its silicon metal production throughout Europe until the end of 2025, with the idling potentially being extended into the first quarter of 2026. This action is likely to cause production loss of about 18–20 kilotons in 2025 and about 20 kilotons in 2026. Although such winter shutdowns are a common practice to counter high operating costs, Ferroglobe generally keeps production going to satisfy demand for silicon metal applied to varied uses, such as active anode materials.
During 2025, silicon metal prices have remained on the decline, posting an 19% drop year to date. The price pressure notwithstanding, overall silicon metal deliveries have remained strong, hitting 350.3 kilotons in the first seven months of the year.
Silicon metal demand in early October was little changed from that of September, displaying no significant improvement. The market, however, continues to reflect underlying resilience, which has assisted in stabilizing prices. Prices in the short term are likely to remain firm, driven by trends in raw material flow, demand dynamics, and inventory changes.
