SHANGHAI, Dec. 31 (SMM) -- This week, prices of domestic silicon metal declined significantly, but trading volumes didn't increase as purchasers planned to make purchase when prices stabilized after decline. Mainstream traded prices of # 553 silicon metal were in the RMB 12,000-12,400/mt range, and # 2202 silicon metal were in the RMB 14,000-14,200/mt range.
Supply still exceeded demand in the whole market and supply of spot goods was ample. Some cargo-holders lowered offers initiatively in order to move goods for cash at the end of the year, but demand was hard to improve and downstream consumers only purchased limited goods to maintain production as they were expecting a future price decline. However, most silicon producers were reluctant to move goods due to high costs, and they were waiting for price to stabilize and rebound.
When entering into a new year, suppliers will adjust their state of mind with regard to goods moving next week, but prices will be relatively stable since market demand is still sluggish. SMM predicts that mainstream traded prices of # 553 and # 2202 silicon metal will be in the RMB 12,000-14,000/mt range. However, overseas consumers will bring a round of purchase before the Chinese New Year holiday as usual and market trading sentiment is expected to improve by the middle or late January of 2010.
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