- Global silicon markets remained largely firm during Q1’26 as elevated energy costs, logistics disruptions, and geopolitical tensions offset weak industrial consumption across several downstream sectors.
- Feedstock and production costs remained volatile due to higher crude oil and electricity costs, while reduced shipping availability and elevated freight rates increased global procurement expenses. Rising energy prices after the Strait of Hormuz disruptions further pressured production economics globally.
- Downstream demand from solar, aluminum alloy, automotive, semiconductor, and silicone sectors remained mixed. Solar-grade consumption in Asia remained comparatively stable, while construction and manufacturing weakness in Europe limited aggressive purchasing activity.
Asia
The Asian silicon market remained relatively stable during Q1’26 despite heightened geopolitical uncertainty. In China, the prices were approximately ~9.93 RMB/kg (Spot FD) in January 2026 and approximately ~9.93 RMB/kg (Spot FD) in March 2026. On a quarter-on-quarter basis, Silicon prices in China increased by approximately ~1.41% in Q1’26 compared to Q4’25, while prices increased marginally by approximately ~0.09% from January to March. Weak domestic industrial activity and cautious downstream procurement limited stronger gains during most of the quarter. However, rising energy costs, reduced shipping availability, and escalating freight premiums following the Strait of Hormuz disruptions tightened market sentiment in March.
Europe
European silicon markets remained under upward cost pressure during Q1’26 due to elevated electricity costs, weak regional production economics, and supply chain disruptions linked to the Middle East conflict. The closure and restricted movement through the Strait of Hormuz sharply increased freight and energy costs across Europe, while higher crude oil prices raised overall industrial production expenses. Demand from the automotive and construction sectors remained subdued, although procurement from specialty chemicals and renewable energy industries provided partial support. Europe also faced tightening import availability as Asian suppliers prioritized domestic and regional demand amid logistics uncertainty.
North America
North American silicon markets remained comparatively balanced during Q1’26, although higher freight costs and global energy volatility continued to influence market conditions. For the USA, Silicon prices decreased from January to March 2026 by ~1.56%. Stable domestic supply and cautious downstream purchasing from the aluminum alloy and industrial manufacturing sectors limited stronger price movements. However, rising logistics costs and tightening vessel availability linked to the Strait of Hormuz disruptions increased import procurement costs during March.