SMM Weekly Forecast on China Silicon Metal Market (Sept. 3-7)

SHANGHAI, Sept. 2 (SMM) --

Supply:

Operating rates at silicon metal producers in southwest China were relatively low due to severe drought and power rationing. Supply of spot silicon metal is tightening. Goods at Huangpu port and Kunming were relatively limited, pushing up spot silicon metal prices.

Demand:

Market demand is recovering from this week, and downstream silicon metal consumers do not adopt wait-and-see attitude any more and begin to make enquiries.

Considering that supply of silicon metal will reduce during the low-water period, coupled with limited power supply and electricity price hike pressure, market expects that silicon metal prices will continue to rise in the following few weeks, but growth will be limited.

Forecast:

SMM expects that mainstream traded prices at Huangpu port will be around RMB 13,600/mt for #553 silicon metal, RMB 14,300/mt for #441 silicon metal, RMB 15,200/mt for #3303 silicon metal and 16,200/mt for #2202 silicon metal in the following week.