Industrial Silicon segment, the market is declining due to the general weak sentiment in commodities. The expected recovery of production capacity from maintenance in the Yili region is gradually materializing, and weekly operating rates in Yunnan are increasing, leading to an overall upward trend in supply. On the demand side, silicon consumption from polysilicon has risen steadily and is stable. The resumption of production in the organic silicon sector supports consumption, but the DMC price decline remains unbroken, and high inventory levels constrain increases in operating rates. The alloy sector, which is in the off-season, has seen a slight decline in operating rates. Although some rotational maintenance is scheduled for the latter part of the month, its impact on overall supply reduction is limited. The fundamentals remain weak, and silicon prices are expected to maintain a volatile range, supported by cost levels.

Polysilicon sector, the pattern of high supply, high inventory, and weak demand continues. Capacity continues to be released during the wet season in the Southwest. While July's output was around 100,000 tons, it fell short of expectations, and August output is expected to increase further. Downstream, the silicon wafer industry has high raw material inventory levels and is cautious in its procurement. Terminal installation demand is weak, and industry inventory is accumulating. In the short term, the market is expected to continue bottoming out with volatile fluctuations.

Nickel on the Shanghai Futures Exchange, the macro front is influenced by the fluctuating situation between the US and Iran, with Iran launching missiles at a US military base this morning, complicating the ceasefire negotiations. The fundamentals show no new drivers. On the supply side, due to disruptions in raw material supply and the reduction of nickel pig iron production lines at IWIP in favor of electrolytic aluminum production, refined nickel output continued to decline in June. Visible global nickel inventories are marginally decreasing. On the demand side, the stainless steel sector remains in the off-season, and the new energy sector is constrained by a weak structural share, making it difficult to significantly improve the current high inventory situation. Overall, nickel is currently in a supply-driven market. The distribution of supplementary nickel ore quotas in Indonesia is the main variable going forward. Until further news on the supplementary quotas is released, the directional drive for nickel is insufficient, and it is expected to fluctuate broadly in line with market sentiment.