SHANGHAI, Mar. 23 (SMM) --
Inventory pressure is still high in Yunnan province, as small amounts of selenium are delivered out. Silicon stored at Huangpu port is reducing due to weak overseas demand and smuggling transactions. Traders are actively expanding downstream market and directly ship goods to downstream consumers.
Overseas demand is weak amid global economic slowdown. Domestic downstream producers make purchases in a small amount between 20-40 mt on an as needed basis. Silicon power producers move less goods than before due to low operating rates at polysilicon producers, and remittance payment method add cash flow pressure at silicon powder producers.
Production costs at silicon metal producers will be lowered in the following week as electricity fees will be charged according to standards in medium or high-water period, so operating rates will grow. However, demand of silicon metal will not increase accordingly. SMM thus expects that silicon metal prices will continue to fall slightly in the coming week.
Mainstream traded prices at Huangput port will be around RMB 12,200/mt for #553 silicon metal, RMB 13,100/mt for #441 silicon metal, RMB 14,000/mt for #3303 silicon metal and 15,500/mt for #2202 silicon metal in the following week.
Fore more information, please contact Katherine Zhu at 51550304.