SHANGHAI, Feb. 10 (SMM) --
Operating rates at China silicon metal producers were only 22% in January, and were even lower at producers in Yunnan and other Southwest regions. Silicon metal producers in Yunan provinces were quiet frustrated towards current low prices of silicon metal and high prices of electricity during low-water period. Therefore, some silicon metal producers in Yunnan province hiked prices. However, producers in Xinjiang, Inner Mongolia and Heilongjiang did not increase silicon prices due to relatively higher operating rates and stable output.
Recovery in downstream demand is far lower than traders’ expectation. Although downstream demand is slowly improving, server surplus of silicon metal still heavily weigh on silicon metal prices.
SMM expects that silicon metal prices will continue to hover at low level in the following week. Mainstream traded prices at Huangput port will be around RMB 12,100/mt for #553 silicon metal, RMB 13,100/mt for #441 silicon metal, RMB 14,100/mt for #3303 silicon metal and 15,800/mt for #2202 silicon metal in the following week.