The industrial silicon market in May saw a trend of an initial rise followed by a decline

 with narrow-range consolidation. Driven by futures capital at the start of the month, 

manufacturers generally raised their quotations. Nevertheless, downstream buyers

 remained reluctant to purchase, resulting in a market with high prices but sluggish 

trading.

   In the middle of the month, industrial silicon futures surged before falling

continuously, with massive capital outflows. Market sentiment shifted from the typical 

"buying on upward trends" to "buying on downward trends". As spot prices dropped,

 downstream manufacturers gradually placed orders to meet rigid demand, pushing 

spot prices back into stable movement.

   The industrial silicon market continues to operate with high inventory levels, and a 

slight inventory build-up is expected soon. Bearish sentiment remains the dominant 

fundamental driver for market transactions. Meanwhile, rising raw material costs, 

power policy adjustments and market expectations for anti-cutthroat competition 

policies may create upside potential for prices.

    Considering the upstream and downstream dynamics of the industrial silicon sector, 

prices are projected to maintain a volatile trend in June. Close attention should be paid

 to the resumption progress of production in southwest China and the recovery of 

downstream demand.