Price

Silicon Pricing and Market Data

Silicon pricing operates across distinct markets. Metallurgical-grade silicon trades at $2,000-3,000/tonne. Solar-grade polysilicon has been extremely volatile: $400/kg in 2008, $10/kg in 2020, $40/kg in 2022, and below $5/kg in 2024 due to massive Chinese overcapacity. Semiconductor-grade silicon wafers command far higher prices: 300mm wafers sell for $100-130 each. Ferrosilicon for steelmaking trades at $1,500-2,500/tonne. The solar polysilicon market has been characterized by repeated boom-bust cycles driven by the lag between demand surges and Chinese capacity expansions.

Pricing Mechanisms

Silicon is priced using benchmarks from CRU / Argus (553 grade, Europe delivered). Silicon pricing operates through a combination of exchange-based benchmarks, price reporting agency assessments, bilateral negotiation, and long-term offtake contracts. The specific mechanism depends on product form, grade, and the buyer-seller relationship.

Price History and Notable Market Events

The Silicon market has been shaped by the following key events:

Price Drivers

Key factors influencing Silicon prices include production levels in China (75% of global supply), demand from semiconductor chips and electronics and solar photovoltaic cells, inventory levels, energy costs, and government policy actions such as export restrictions or strategic stockpiling.

Spot vs. Contract Pricing

The Silicon market features both spot transactions and longer-term contracts. Spot prices reflect current conditions and are more volatile, while multi-year offtake agreements provide supply security for both producers and consumers. Current spot pricing is in the range of $2,100 per tonne.