Bearish Sentiment and Sluggish Transactions in China's Silicon Market

SHANGHAI, May 13 – Short position sentiment from China's silicon metal purchasers became strong and enquiries increased at the week end, but overall trading sentiment was still sluggish. According to SMM latest offers of silicon metal at Huangpu port, prices were between RMB 12,200-12,600/mt for #553 silicon metal, between RMB 13,300-13,700/mt for #3303 silicon metal, between RMB 14,000-14,400/mt for #2202 silicon metal. Prices for various specifications of silicon metal all slipped by 200-250/mt from a week earlier.

According to SMM sources, production gradually resumed at silicon metal producers at various regions. However, cost pressure at producers at various regions still varied to great extent as electricity prices were between RMB 0.2-0.6/mt during the transition period from low-water period to high-water period. SMM believes that spot silicon prices will temporarily  remain stable between current price band at this week, and prices shall still have room to fall further in the following week.

To contact the writer on this report: naturewang@smm.cn

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