SHANGHAI, Jun. 23 (SMM) -- Enquiries in silicon metal export market were brisker this week, and trading volumes increased slightly from previous level. SMM latest FOB Huangpu were between USD 2,200-2,250/mt for #553 silicon metal, between USD 2,260-2,320/mt for #441 silicon metal, between USD 2,380-2,420/mt for #3303 silicon metal, and between USD 2,480-2,520/mt for #2202 silicon metal.
The details concerning electricity price adjustment were not clear in major silicon metal producing regions, but offers at ports for spot silicon metal were lifted up due to anticipation of higher electricity prices, with relatively strong unwillingness to move goods reported in the market.
People's Bank of China decided to promote RMB exchange rate reform, and enhance the flexibility of RMB exchange rate. In this context, silicon metal FOB was also lifted up. One dollar can exchange for RMB 6.7980 on June 22nd, breaking through 6.80 and hitting a high new since June 2005 when policymakers unpegged the currency from the dollar.
It is rumored in the market that silicon metal export tariff will be adjusted from 15% to 20%, and may be implemented as of July 1st. Affected by such rumor, enquires from overseas purchasers increased and trading volumes increased as well, as they planned to replenish certain amount of stocks before the implementation of such policy.
Silicon metal prices were pushed up by electricity price adjustment, RMB appreciation and export tariff adjustment as well as other uncertainty factors. Prices of silicon metal climbed all the way after the Chinese Dragon Boat Festival, and trading volumes increased to certain extent as well. SMM believes that uncertainties from related policies will gradual become clear before the end of June, and silicon metal price performance will lie more in market fundamentals in the future.
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