SHANGHAI, Apr 7 (SMM) -- Severe drought in southwest China continued, and production of silicon metal in those regions was negatively affected due to electricity supply rationing. Operating rates were still low, and previous inventories were almost consumed out, leading to tight supply of spot silicon metal in various regions in China. In viewing that drought still takes time to ease and offers of silicon metal in the spot market rose steadily recently, cargo-holders showed reluctance to move goods with a strong wait-and-see sentiment, and all lifted their offers higher.
Recently, prices of silicon were too high, consumption in overseas market was sluggish and orders were few, so traders had low buying interest and only made purchases on an as-needed basis. Silicon metal spot market continues to have high pries but low transactions, and the waiting-and-see sentiment shall continue to last in the market.
Today, offers of #553 silicon metal and #441 silicon metal were both up by RMB 100/mt at Huangpu port on April 7th. Traded prices of #553 silicon metal were around RMB 12,900/mt and traded prices of #441 silicon metal were around RMB 13,400/mt at Huangpu port. Offers of FOB in export market were also pushed up, with #553 silicon metal as high as USD 2,250/mt. However, there were still few transactions reported in the market.
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