SHANGHAI, Mar. 30 (SMM) --
Silicon metal producers are still reluctant to move goods due to relatively high production costs since electricity prices are still high at most regions China. Offers of silicon metal are mixed in China. Some producers move goods at low prices due to cash flow pressure, while some producers are reluctant to sell goods at low prices. Inventory of #3303 silicon metal is as high as 20,000 mt in Kunming. Supply of low-grade silicon metal is relatively tight in Kunming. As demand for silicon metal from overseas market has slumped, spot silicon stored at Huangpu port has reduced as well.
SMM expects that another 2-3 silicon metal producers will halt production in April, which will greatly affect upstream silicon powder and trichlorosilane markets
Positive factors: price hike of electricity, raw material and transportation fee
Negative factors: sluggish demand, high operating rates during high-water period.
Silicon metal market will continue to be in supply surplus, and SMM expects that silicon metal prices will continue to fall in the following week.
Mainstream traded prices at Huangput port will be around RMB 12,200/mt for #553 silicon metal, RMB 13,000/mt for #441 silicon metal, RMB 13,800/mt for #3303 silicon metal and 15,500/mt for #2202 silicon metal in the following week.