Silicon metal price extended declines and to still swing on a weak note next week

Market review: Silicon metal price extended losses this week. As of January 18, prices of standard 553# silicon were 14,900-15,000 yuan/mt (-150 yuan/mt WoW), 15,100-15,200 yuan/mt for above-standard 553# silicon (-250 yuan/mt WoW), 15,300-15,500 yuan/mt for 441# silicon (-250 yuan/mt WoW), 15,400-15,600 yuan/mt for 421# silicon (-250 yuan/mt WoW) and 15,900-16,200 yuan/mt for 421# silicon used in silicone (-200 yuan/mt WoW). Traded price of silicon kept dipping this week. The most-traded silicon futures contract softened, hitting a low of 13,215 yuan/mt. According to regional premiums/discounts, based on pricing transactions, buying price was still much lower than selling price of silicon plants. Therefore, silicon market mainly saw price transactions. Trading activity was minimal amid high offers. Some silicon plants were under pressure from inventory. In addition, some tried to clear stocks due to tightening cash flow. Under this circumstance, silicon price weakened.

Downstream buyers and traders were still pessimistic. Stockpiling was about to end, and pre-holiday demand made a muted turn. There was no restart of silicon plants in Xinjiang from production restrictions triggered by environmental protection. Silicon price should swing on a weak note next week.