SHANGHAI, Mar. 2 (SMM) --
Operating rates at domestic silicon metal producers were still between 20-30% in February. Major silicon metal producers were preparing raw material for preparation of upcoming furnace ignition, but current low silicon price, a new round raw material price hike and electricity and labor cost increase will add survival pressure on silicon metal producers.
Downstream demand is relatively stable at preset. Production resumption at aluminum alloy producers contributes higher demand for low-grade silicon metal, production of polysilicon metal is stable, and trichlorosilane producers are also replenishing raw materials for production resumption. Although downstream slightly improves, the recovery in demand is still considered relatively slow.
Considering the growth in demand from downstream producers, SMM expects that low-grade silicon metal prices will grow slightly and high-grade silicon metal prices will remain stable in the following week.
Mainstream traded prices at Huangput port will be around RMB 12,400/mt for #553 silicon metal, RMB 13,200/mt for #441 silicon metal, RMB 14,200/mt for #3303 silicon metal and 15,800/mt for #2202 silicon metal in the following week.