Silicon metal price fell amid thin trades, but solid cost should underpin prices in short term

As of February 22, prices of standard 553# silicon were 14,600-14,700 yuan/mt (-200 yuan/mt), 14,800-15,100 yuan/mt for above-standard 553# silicon (-50 yuan/mt), 15,100-15,300 yuan/mt for 441# silicon (-50 yuan/mt) and 15,500-15,600 yuan/mt for 421# silicon used in silicone (-150 yuan/mt), all down compared to pre-holiday levels. There were more inquiries for silicon metal, but trades were thin. In addition, ongoing shutdown of logistics and transportation in Xinjiang and Yunnan kept freight rates high. Therefore, actual trading sentiment was muted. Buyers had strong willingness to lower purchase prices when making inquiries. Suppliers generally kept prices firm, while some lowered by 100-200 yuan/mt, in a bid to make deals.
Meager profits amid mild price erosions made silicon metal plants stand at a break-even level. However, short-term silicon metal prices are less likely to nosedive amid low stocks and strong cost support, and may remain stable, boosted by intensive stockpiling of downstream sectors at the end of February and early March.