SHANGHAI, Feb. 26 (SMM) --
This week is the first trading week after the Chinese New Year Holiday, and overall trading sentiment was not brisk in the market, with strong wait-and-see sentiment in the market. Offers were slight lifted earlier this week, but lacking support. Producers in main producing regions were unwilling to lower offers due to high production costs, and prices stabilized in the 2H of this week.
Trading sentiment was sluggish in domestic silicon market. Downstream consumers could maintain normal production due to previous inventory and they adopted a wait-and-see attitude, and planned to replenish stock when price trend is clearer in the market. Inquiries from the overseas market increased, and domestic traders lifted FOB offers. However, actual trading volumes were not high as overseas purchasers could not accept increased offers temporarily.
SMM believes that production costs at silicon producers were only favorable in Hunan province, and overall operating rates will still remain at low levels. Demand from overseas market gradually warms up, and inventories at domestic producers will be gradually consumed. In this context, possibility for LME silicon prices to rise further will be great. It is expected that mainstream prices of #553 and #2202 silicon will in the RMB 11,800-14,300/mt range next week.
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