SHANGHAI, June 19 (CBI China) -- Silicon market remained stable during the first half of this week, while low-grade silicon price experienced marked declines during the second half of this week, with more low-priced resources appearing in the market.
Currently, supply and demand remained in balance in silicon metal market. The traders’ inventories were very limited, and tiny changes in supply and demand will exert impact on the price rapidly. Low-grade silicon supply showed slight surplus, since more factories in Yunnan, Sichuan and Guizhou provinces restarted operation, especially after the electricity price was cut in Guizhou province. 553# silicon prices fell by RMB 200-300/mt. Market traded price has fallen below production cost at select factories, so some factories will have to suspend or cut production when 553# silicon price falls to RMB 8,500/mt, even if the government offers subsidies to them.
Next week, 553# silicon will be traded in the RMB 8,600-8,700/mt range in spot market, and 2202# silicon will be traded around RMB 9,800/mt.
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