Industrial silicon futures delivery dropped, weekly increase in warehouse receipts is small [SMM analysis]

According to Guangzhou Futures Exchange, as of the close of trading on March 1, the total number of industrial silicon futures warrants was 48250 lots, up by 128 lots on a week-on-week basis, an increase of 0.3%.
In terms of regions, Kunming, Shanghai, and Tianjin occupy the top three positions in the number of warehouse receipts, accounting for 29%, 20%, and 15% respectively.
Compared with a week earlier, the number of warehouse receipts for delivery warehouses in Guangdong and Tianjin increased by 144 and 24 lots respectively; while the number of warehouse receipts for delivery warehouses in Kunming and Sichuan decreased slightly.
In the second week after the Chinese New Year holiday, the registration pace of new warehouse receipts in industrial silicon futures delivery warehouses slowed. In Kunming and Sichuan warehouses close to the industrial silicon producers, the total number of warehouse receipts decreased week-on-week.
According to SMM, the prices of industrial silicon futures declined last week. During the week, the leading industrial silicon production leader announced a reduction in industrial silicon spot quotations. In addition, the social inventory of industrial silicon increased. Although there was a slight decrease of 1,000 tons this week, it is still at a relatively high level. Except for delivery warehouses in South China, delivery warehouses in most areas in China still have spare storage capacity.
After the Chinese New Year holiday, the price difference between the industrial silicon 421# spot and the contracts (taking into account the premium of 2,000 yuan/ton of high-quality cargoes) fluctuated within ±100 yuan/ton. The profit margin for arbitrage traders was narrow, and the popularity of futures warehouse receipts will decrease in the short term.