Silicon Metal Market Remained Weak amid the Poor Orders

SHANGHAI, Dec 12 (SMM) - The silicon metal market remained weak last week. As of December 8, the prices of standard #553 silicon metal in east China lost 100 yuan/mt on a weekly basis to 18,600-18,700 yuan/mt, those of above-standard #553 silicon metal dropped 400 yuan/mt to 18,900-19,300 yuan/mt, and those of #3303 silicon metal fell 300 yuan/mt to 20,100-20,300 yuan/mt. In order to reduce the inventory pressure, large-sized factories in Xinjiang lowered their quotations at the beginning of this week to promote the transactions. And the enterprises in north China also delivered actively. However, the downstream enterprises and traders were wait-and-see, hence the market transactions were limited, weighing on the silicon metal market as a whole.

The prices of aluminium scrap increased while the aluminium alloy ingot prices rose limitedly, hence the profits of ADC12 aluminium alloy products were poor. The operating rates of large-sized aluminium alloy enterprises remained stable while that of medium and small-sized enterprises declined. Silicon metal prices fell and enterprises mainly purchased as needed. The operating rates of silicone enterprises were basically stable. Last week, some monomer enterprises purchased while some suppliers were hesitant to sign orders. The transaction prices of #421 silicon metal stood at 20,300-20,600 yuan/mt. The operating rates of polysilicon enterprises were high. Although the prices of polysilicon fell, the profits remained extremely high. Therefore, polysilicon enterprises were still active in production. The orders were relatively thin this week, but the demand for silicon metal will remain strong in the long run.

As the pandemic situation eased and the transportation returned to normal, the silicon metal production of large-sized factories in Xinjiang gradually resumed and the supply increased. Affected by rising costs amid the dry season in Sichuan and Yunnan, the profits of most enterprises were low, and they still held the prices firm. The prices of the same specification in the north China were lower. In terms of fundamentals, the spot supply is relatively sufficient. Therefore, the silicon metal prices are unlikely to rebound in the short term. It is expected that silicon metal prices will be weak and stable this week.