SHANGHAI, Jan. 22 (SMM) --
This week, prices at ports of #441 and #2202 silicon metals were relatively stable; although some cargo-holders still moved #553 silicon metal for cash at low prices, the total volumes moved by such cargo-holders reduced significantly, and prices ceased to decline when felling to RMB 11,700/mt. Offers were moved around RMB 12,000/mt on Friday; #3303 silicon metal declined slightly at the beginning of this week, with traded prices around RMB 13,000/mt.
Domestic traders adopted a wait-and-see attitude and were unwilling to move goods. Silicon powder producers told that they would replenish stock before the Chinese New Year holiday but would not make purchase in a large amount; Some aluminum alloy producers told that they had low inventory levels at present, so they were thinking to increase purchasing amount.
Export market favored buyers, and domestic exporters who were willing to make transactions could only cut down offers. Mainstream traded prices for #553 silicon metal (FOB) were in the USD 2,040-2,080/mt range, but most domestic traders couldn't accept low prices with low trading volumes.
With regard to inventories, inventories at Huangpu port continued to decline, and inventories at Hongkai and Yuehua warehouses were both around 4 kt currently.
SMM believes transactions will be hard to improve in the remaining few transaction days as Chinese New Year holiday will begin in mid-February. Producers' interest in moving goods is mixed but their interest in purchasing is higher than traders. It is expected that mainstream traded prices for # 553 and # 2202 silicon metals will remain in the RMB 12,000-14,300/mt range.
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