Weak demand influence the world silicon market

Recently, the downstream week demand influenced not only Chinese silicon market, but also European market, even for the world's market.

China:

• Ample supply coupled with persistently weak demand pushed the Chinese silicon export price to its lowest level since September 2016. 
• Most silicon producers in Fujian province have shut down operations because of the cancellation of cheaper electricity prices in the third quarter by the local government. 
• Some refiners in Yunnan province and Sichuan province was forced to close the plant due to the market level could not sustain the production cost. Sufficient supply has pushed traders and consumers only consider prompt transactions and long term contract is being reduced.

Europe:

• Last week, grade 5-5-3 remained unchanged on limited spot liquidity in general. 
• Market participants emphasized that cheaper offers were flooding an oversupplied market ahead of the summer lull; the abundant supply cannot be absorbed by weak demand, especially from the automotive industry.

It is obvious to make a conclution that producers are struggling to sell at current levels with very  very small margin for profit, even with "0" margin or some losses if continue production.