For the Quarter Ending June 2025
North America
• Silicon Metal Price Index rose by 9.6% quarter on quarter compared to Q1 2025, reflecting the combination of robust demand and supply-side pressures.
• Silicon Metal Production Cost Trend saw moderate relief in raw material expenses, but elevated energy and freight costs especially in late Q2 limited cost easing and contributed to price firmness.
• Silicon Metal Demand Outlook remained strong across multiple downstream sectors: the automotive industry (notably EV/PHEV), aluminum alloy production, solar energy, and semiconductor manufacturing all showed solid or accelerating consumption throughout the quarter.
• Supply conditions were steady from domestic producers like Ferroglobe and Mississippi Silicon, but global trade uncertainties (including potential antidumping tariffs on imports from Vietnam, Angola, Australia, Norway, and Thailand) weighed on near term availability.
• At the start of the quarter, prices experienced modest upward momentum (around +0.5 % CFR Illinois Port) due to sustained demand, the Semiconductor and EV/PHEV markets were especially supportive amid stable supply dynamics.
• Mid quarter, supply disruptions triggered by severe flooding in the Ohio and Mississippi river valleys tightened domestic supply, prompting force majeure declarations and pushing spot prices up ~1.5%, raising concern among downstream alloy and silicone producers.
• By the end of the quarter, freight cost spikes and slower import logistics (particularly from Brazil, Norway, and China), combined with ongoing trade tension, exerted incremental upward pressure on prices despite some demand slowdown in aluminum and silicone procurement.
Why did the price of silicon metal change in July 2025 in USA?
The Silicon Metal Price Index decreased slightly due to improving trade flows, weakening freight rates, and modest restocking by downstream users after Q2 tightness. The North America Metal silicon price index was about US $3.06/kg in July, down ~0.3% from June 2025 levels.
APAC
• The APAC Silicon Metal Price Index fell by approximately 17.8% quarter on quarter, reflecting continued oversupply and weak absorption across key regional markets in China and Southeast Asia.
• Metal Price Index remained under strain due to persistent oversupply and weak downstream purchasing sentiment.
• Silicon Metal Production Cost Trend stayed relatively stable—with modest relief from raw material cost declines (silica, silicon coal), but those weren’t enough to offset price weakness.
• Silicon Metal Demand Outlook remained subdued across key consuming sectors (aluminium alloy, polysilicon/solar, automotive), with most buyers depleting existing stocks rather than initiating new orders—especially in export markets like Japan and South Korea.
• Silicon Metal Price Forecast for APAC suggests continued softness into the near term unless demand revives or inventory levels correct; medium-term recovery is possible if deferred restocking occurs later in 2025.
• On the supply side, production continued ramp ups in Xinjiang, Inner Mongolia, Sichuan (including newly commissioned capacities), while some maintenance shutdowns in Yunnan/Qinghai had only minor impact, so output continued to exceed demand across Q2.
• Demand side: downstream industries remained cautious; order activity stayed minimal, carried by slow industrial growth and global uncertainties dampening consumption expectations.
• Why did the price of Silicon Metal change in July 2025 in Asia?
In early July, Silicon Metal Price Index in APAC began to increase, reversing several months of decline. The rebound was driven by unexpected production cuts in major Chinese hubs especially Xinjiang—where facilities curtailed output in late June, tightening supply sharply. As a result, futures rose month on month and spot quotes climbed; this supply shock intersected with slightly improved downstream inquiries, triggering buyers to step in ahead of tighter condition
Europe
• Europe Silicon Metal Price Index in Q2 2025 declined by approximately 20.2% quarter on quarter, reflecting persistent oversupply and weak downstream demand across the region.
• Silicon Metal Production Cost Trend saw moderate declines in raw material and energy inputs, European freight rates eased, and silica and silicon coal prices remained stable, providing minimal cost support amid falling commodity prices.
• Silicon Metal Demand Outlook remained soft in Europe: key sectors such as aluminium alloys, automotive and solar downstream industries continued to destock and postpone procurement, prioritising inventory drawdowns over fresh purchases.
• Silicon Metal Price Forecast for the region suggests that unless industrial and green energy demand rebounds materially later in 2025, prices are likely to remain under pressure in the short term, with potential recovery only emerging if supply tightens or demand improves.
• By the start of the quarter, supply was ample: imports from China, Norway, France and other suppliers remained steady; Chinese exports rose sharply, intensifying global oversupply pressures. Freight costs along major Asia Europe routes declined, allowing cheaper shipments into European markets.
• Mid quarter trading saw CFR Hamburg prices slide—weekly drops of 1.3–3.5% were reported—as subdued industrial activity and ample global inventories sustained bearish sentiment. Although European production remained stable, it simply added to the excess.
• By the end of the quarter, inventory levels across European warehouses remained elevated, trading volumes thin, and buyer sentiment cautious—further reinforcing downward momentum in the Price Index.
Why did the price of Silicon Metal change in July 2025in Europe?
In early July, the Europe Silicon Metal Price Index posted a further decline month on month, as reported in the July 2025 metal silicon price index; the decrease was driven by continued weak downstream demand in Europe, easing logistics costs, and persistent oversupply from China and secondary suppliers.
For the Quarter Ending March 2025
North America
• The Silicon Metal Price Index in the US market settled in Q1 2025 at USD 2,751/MT CFR Illinois Port, showcasing continuous upward pressure throughout the quarter.
• Why did the price of Silicon Metal change in April 2025?
Prices increased marginally in the early weeks of April 2025, supported by sustained downstream demand and logistical constraints from earlier supply disruptions.
• The region experienced tight supply conditions due to severe winter storms that disrupted key Gulf ports and production halts caused by force majeure declarations from U.S. producers.
• Imports from Brazil, Chile, and Norway were stable, while Asian imports faced delays, compounding the supply tightness.
• Strong Silicon Metal Demand Outlook was recorded from automotive, solar, and semiconductor industries, especially with a surge in EV-related manufacturing and infrastructure-led aluminum usage.
• Despite intra-quarter price hikes, a quarter-on-quarter decrease of 13.2% was observed compared to Q4 2024 due to previous elevated base prices.
• The Silicon Metal Spot Price reflected the region’s strained supply chain and robust industrial consumption patterns.
• The Silicon Metal Production Cost Trend remained elevated due to energy disruptions and supply chain volatility.
• The Silicon Metal Price Forecast suggests a continuation of tight market conditions, with gradual stabilization as domestic output recovers.
Europe
• The Silicon Metal Price Index in Europe stood at USD 2,191/MT CFR Hamburg by the end of Q1 2025, reflecting mild gains compared to the previous quarter.
• Why did the price of Silicon Metal change in April 2025?
in the early weeks of April, Silicon Metal prices decreased marginally due to weak downstream activity and persistent macroeconomic sluggishness across the region.
• The market experienced price declines throughout the quarter, especially pronounced toward the end, despite supply-side constraints due to maintenance shutdowns and energy limitations in Norwegian and Icelandic facilities.
• Demand was muted, notably from the aluminium alloy and semiconductor sectors, both facing a downturn due to softening EV production and lackluster industrial output.
• The Silicon Metal Spot Price remained under pressure from subdued consumption trends.
• Imports from Norway, France, Brazil, and China were stable, and inventory levels remained healthy, preventing any sharp rebounds.
• While energy costs remained elevated, these did not significantly affect price movement due to oversupply and underwhelming demand.
• The Silicon Metal Production Cost Trend was influenced by higher power tariffs but mitigated by operational stability.
• The Silicon Metal Price Forecast anticipates further softness in the near term, with potential recovery hinging on a rebound in industrial and green energy demand.
• Quarter-on-quarter, prices rose 3.5% compared to Q4 2024, driven largely by earlier energy-linked price corrections.
Asia-Pacific (APAC)
• The Silicon Metal Price Index in APAC, particularly China, closed Q1 2025 at USD 1,459/MT FOB Shanghai, marking a 12% quarter-on-quarter decline from Q4 2024.
• Why did the price of Silicon Metal change in April 2025?
Prices decreased marginally in early April 2025 due to overcapacity, soft downstream demand, and bloated inventory levels.
• The market faced bearish sentiment, with sluggish procurement activity and abundant inventories weighing down pricing.
• China’s major producing provinces like Xinjiang and Inner Mongolia maintained steady or rising output, further worsening oversupply conditions.
• The Silicon Metal Spot Price trended downward due to reduced offtake from polysilicon, semiconductor, and aluminum alloy sectors, all of which showed lackluster demand.
• Regional Silicon Metal Production Cost Trends remained relatively stable but were insufficient to counter the effects of weak demand and inventory buildup.
• Procurement strategies among end users were cautious, driven by global economic uncertainties and conservative forecasting by manufacturers.
• The Silicon Metal Demand Outlook in APAC remains muted in the short term, with no immediate signs of significant consumption rebound.
• The Silicon Metal Price Forecast suggests potential further price pressure unless inventory levels are corrected or demand recovers materially in downstream sectors.
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.
Frequently Asked Questions (FAQs):
Q1: What is currently driving the price trends of Silicon Metal in different regions?
Prices are influenced by high demand from the automotive (lightweight alloys) and electronics/solar (semiconductors, solar panels) sectors. Regional variations occur due to production costs, energy prices, and trade policies.
Q2: What are the main applications driving the demand for Silicon Metal?
The primary drivers are aluminum alloys (for automotive and aerospace), chemicals (silicones and silanes), and the electronics/solar industries (semiconductors and photovoltaic cells). Growing EV and 5G sectors are also significant.
Q3: Who are the top global producers of Silicon Metal?
China is the dominant global producer, accounting for a vast majority of the world's silicon metal output. Other significant producers include Brazil, Norway, and Russia.
Q4: What challenges and opportunities exist in the global Silicon Metal market?
Opportunities lie in surging demand from green energy and tech. Challenges include high energy costs, supply chain concentration in China, and the need for sustainable production.
