SHANGHAI, Dec. 17 (SMM) --
As sulphur emission from thermal power stations in Yunnan province fails meet energy conservation and emission reduction standard, thermal power supply is in shortage. In this context, many silicon metal producers may still be forced to halt production. Currently, offers of spot silicon metal were firm in Yunnan province, and most producers arrange production based on orders they have received previously.
Overseas replenish certain amount of goods with the coming of Christmas holiday and New Year holiday. In this context, export market will become quiet again from late December to early January. While, domestic demand still doesn’t show any recovering sign. Orders from aluminum alloy industry contracted significantly, and downstream silicon powder sector made purchases on an as-needed basis.
Demand for silicon metal was weak, but producers’ willingness to move goods is strong due to cash flow pressure by the year end. With the coming of holidays both at home and abroad, demand for silicon meta will be sluggish in the short term. SMM believes that silicon metal prices will begin to slip in the following week.
SMM believes that mainstream traded prices will be around RMB 13,800/mt for #553 silicon metal, around RMB 14,700/mt for #441 silicon metal, around RMB 15,400/mt for #3303 silicon metal and around RMB 16,200/mt for #2202 silicon metal.
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