SHANGHAI, May 28 (SMM) --
Electricity prices in high-water period will be implemented in southwest China from the end of May and early June, and operating rates at silicon metal producers will recover rapidly in those regions. China’s supply of spot silicon is expected to be in a surplus by then. However, other regions, except southwest China, that have already implement high-water electricity prices may experience electricity price hikes in the short term and the cost hike shall exert certain pressure on producers.
Affected by recent global economic downturn, demand for silicon metal continued to be sluggish both at home and abroad. However, purchasers shall plan to replenish silicon in 3Q as previous inventories are gradually consumed out. In this context, enquiries increased in silicon metal market this week, and inventories were constantly increasing in Huangpu port.
SMM believes that prices will fall further as supply of spot silicon metal will increase. Meanwhile, trading volumes will also increase as demand will recover both from home and abroad. It is expected that mainstream traded prices will be around RMB 11,300/mt for #553 silicon metal at Huangpu port, around RMB 12,000/mt for #441 silicon metal, RMB 12,900/mt for silicon metal and around RMB 13,800/mt for #2202 silicon metal.
To contact the writer on this report: email@example.com
Copyright © SMM. All Rights Reserved
None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: firstname.lastname@example.org