SHANGHAI, July 26 (SMM) -- Due to price hike of electricity and petroleum coke, offers from silicon were stable on July 26 and spot silicon metal pries ceased to decline and stayed stable, with downward momentum being curbed.
According to SMM latest offers at Huangpu port, prices were between RMB 11,500-11,700/mt for #553 silicon metal, between RMB 12,400-12,700/mt for #441 silicon metal, between RMB 13,000-13,300/mt for #3303 silicon metal and between RMB 13,500-13,900/mt for 2202 silicon metal. Wait-and-see sentiment was still strong in the market, and transactions were sluggish, with sparse inquiries reported in the market.
According to SMM sources, domestic petroleum prices have climbed steadily, with lasted offers between RMB 1,480-1,560/mt in southwest China, up approximately RMB 200/mt from a month earlier. In this context, production cost for silicon metal production also increased by RMB 200/mt, further squeezing producers' profit. Offers from producers with ample cash flow were still firm, and producers' unwillingness to move goods increased. In this context, domestic silicon metal prices ceased to slip and stayed stable temporality.
SMM believes that whether or not silicon metal prices can stay stable shall depend on overseas price acceptance and impact from low-priced goods from producers with cash flow pressure.
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