SHANGAHI, Feb. 24 (SMM) -- After the Chinese New Year Holiday, transactions gradually occurred in domestic silicon metal market. Offer in main producing regions in Guizhou, Sichuan and Yunnan provinces were high due to high electricity prices and negative impact of restriction of electric power supply, with prices at Huangpu port of #553 silicon metal in the RMB 11,800-12,000/mt range. Offer of silicon remained flat with the level before the Chinese New Year Holiday in Hunan province, with prices to port at RMB 11,700/mt, as operating rates were high in Hunnan province due to sufficient rain. In addition, electricity prices also dropped in Hunan province, with electricity charged in the RMB 0.38-0.45/kWh range. Offers of #441 silicon metal were also lifted slightly, with prices offered in the RMB 12,400-12,800/mt range. Price changes of #3303 and #2202 silicon metal were slight.
It was reported that, inventories in Huangpu port increased to 14 kt due to arrivals of goods during the Chinese New Year Holiday. Traders told that, export inquires increased, and transactions have already reached after the Chinese New Year Holiday. # 553 silicon metal (FOB) was traded in the USD 2,080-2,130/mt range, up by USD 10-20/mt compared with the levels before the Chinese New Year Holiday. Overseas markets, epically in Japan and South Korea market, had certain inventories, and purchasers from overseas markets only made low purchasing volumes. It is expected that overseas purchasers will enter into Chinese market to replenish stocks when entering in March. As demand form overseas market increased, export prices will also continue to climb.
SMM believes that, domestic silicon metal prices will continue to be on upward track in the short term, and will remain firm in the early March. Prices of #553 silicon metal are expected to move around RMB 12,000/mt. However, silicon metal prices may decline in the middle or late March when more and more producers resume production.
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