SHANGHIA, Jun. 9 (SMM) -- Silicon metal prices ceased to decline and gradually stabilized early this week in spot market, and are expected to climb slightly on Wednesday. Affected by electricity price hike in main producing regions, producers kept their offers firm. According to SMM latest mainstream offers at Huangpu port, prices were between RMB 11,300 and 11,600/mt for #553 silicon metal, between RMB 12,100-12,500/mt for #441 silicon metal, between RMB 12,700-13,100/mt for #3303 silicon metal and between RMB 13,500-13,900/mt for #2202 silicon metal. Enquiries were relatively brisk in domestic spot market, and transactions increased to certain extent.
Energy saving and pollutant emission cut crackdown has been implemented from June 1st, and favorable electricity prices are cancelled at various regions in order to eliminate backward industry and industries with excessive energy consuming and excessive environmental pollutant emission. According to SMM sources, silicon metal producers will all halt production at Huaihua region of Hunan province due to high electricity costs, and they offered #553 silicon metal at RMB 12,000/mt which is far higher than market prices as they were unwilling to move goods.
Market rumored that electricity prices will be lifted again in Sichuan and Yunnan prices where high-water period electricity prices have just been implemented. If such news is true, the decline silicon metal prices will rebound significantly. Current market sentiment became bullish and some traders had intention to replenish stocks. SMM believes that market shall continue to focus electricity price adjustments over the short term, and silicon metal prices will stay stable and may grow slightly amid wait-and-see sentiment.
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