SHANGHAI, Feb. 25 (SMM) --
Based on results of SMM latest survey, operating rates at producers in Yunnan, Sichuan and Guangxi were still low, and producers in Hunan, Guizhou and Fujian will gradually resume operation in early March. In this context, supply of silicon metal will not improve significantly in the short term.
Downstream producers gradually resumed production after the holiday, but they largely consumed pre-holiday stocks, with only few consumers making purchases on an as-needed basis. Most overseas foreigners stood on the sideline, expectation correction of silicon metal prices.
Struggles between suppliers and demanders will continue in the following week. If inventory is low, purchases from downstream consumers will push price higher. If consumers continue to wait for anticipation of higher operation rate in March, prices will fall. Supported by rising costs and supply shortage, short term prices for domestic silicon metal may stay flat from last Friday's level.
SMM expects that mainstream traded prices will be around RMB 14,000/mt for #553 silicon metal at Hangpu port, RMB 14,800/mt for #441 silicon metal, RMB 15,300/mt for #3303 silicon metal and 16,200/mt for #2202 silicon metal.
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