Silicon metal prices continue to fall, but may stabilise cost support

As of November 9, prices of standard 553# silicon metal in East China were down 150 yuan/mt or 1% WoW at 14,200-14,300 yuan/mt. This week witnessed inquiries from polysilicon producers, limited demand from grinding plants, and rigid demand from silicon and aluminium alloy producers. On Monday, some production capacity in Dehong Prefecture, Yunnan Province, was subject to power cuts in turn. Having little impact on silicon buyers. With few inquiries, silicon suppliers had to lower prices.

There was a huge difference in electricity prices between the south and the north during the normal-water period and dry season. Most silicon plants in north China were profitable based on current silicon price, while silicon plants in Yunnan and Sichuan struggled with near the cost line. Silicon production decreased slightly in November, and may further shrink in December amid another rise in electricity prices. Given picture of supply, demand and inventory, short-term silicon market is expected to move sideways.