SHANGHAI, Jan. 29 (SMM) --
This week, silicon prices at ports declined slightly, and prices at RMB 11,700/mt for # 553 were rarely seen in the market, with lowest purchase prices at RMB 1,1800/mt. Low-priced supply of #441 as low as RMB 12,500/mt was heard in the market. Affected by lower prices adjustment at main producing regions, #3303 and #2202 also declined. It was difficult to purchase #3303 at prices lower than RMB 13,000/mt. Demand of #2202 were still weak, with prices moving in the RMB 14,000-14,200/mt range.
Stock removal and stock replenishment at Guangzhou ports were both not brisk, with relatively stable inventories. Inventories were around 4,400mt at Hongkai warehouse and around 3,900mt at Yuehua warehouse. Export market was relatively brisk, as some traders received orders previously wanted to ship goods to destination before the Chinese New Year holiday, causing increased export volumes from the beginning of last week.
Traders took the opportunity to replenish stock when prices were at low levels, but high quality goods were rarely seen in the market. Currently, production costs were still at high levels, and most silicon producers kept offers firm. Sales of aluminum alloy were good at present and operating rates remained at relatively high levels aluminum producers, so purchase of silicon metal was relatively stable. Supply and demand didn't change significantly, and supply of goods will not be tight even if output at main producing regions declined.
SMM believes that prices of silicon metal will remain at current level next week, with mainstream prices of #553-#2202 will move in the RMB 11,800-14,200/mt range.
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