[Minor metal] Summary of Silicon Market 2008

SHANGHAI, Dec. 31 (CBI China) -- In 2008, many disasters took place, from the snowstorm at the beginning of the year, earthquake to the financial tsunami at the end of the year, all Chinese industries were affected significantly, including silicon industry.

    From January 1st, silicon metal was levied tariffs of 10%. At that time, Chinese exporters passed part of export tariffs to foreign traders due to tight supply, as a result, the Chinese prices rose by nearly 10%, with little impact on domestic market. 
 After the Spring Festival, as the main production areas including Hunan and Guangxi suffered snowstorm, silicon production delayed, leading the silicon prices surge to the first high point by the end of March, the delivery prices at Port 553 reached RMB 14000/mt. The prices fell back after the production was resumed to normal level.

    In May, Wenchuan earthquake touched the hearts of all Chinese people. As Wenchuan area is one of the concentrated production areas of silicon, the silicon production in Sichuan area was affected seriously. The silicon prices surged again, reach the highest level this year in mid-July, also being the highest level in the memory. The delivery price at Port 553 was RMB 14800/mt, Port 2202 above RMB 18000/mt.

    Since then, the silicon price began to decline. The weak demand of the downstream and the increasing new capacity led to oversupply. After silicon prices fell to RMB 12000/mt in October, the production suspension in aluminum alloy industry exerted great pressure on the silicon market, as a result, the factories suspended production gradually.

    In mid-November, the market calmed down, the sluggish market dampened the market confidence. Occasionally, some factories sold silicon at low prices due to cash problems. The delivery price at Port 553 once has fallen to the lowest RMB 8000/mt.

    On December 1st, the tariffs of silicon raised to 15%, leaving no room for domestic prices falling, part of tariffs have been to passed to foreign traders, leading more difficulties to exports. In late December, many factories suspended production. Along with the consumption of inventory, the market improved, leading slight rebound in silicon prices, with the growth of RMB 500/mt. 
 Silicon market experienced prices hike and price plummet in 2008, and it is bound to be extraordinary in 2009, CBI will continue to focus on the latest news on silicon with you!

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