SHANGHAI, Apr. 27 (SMM) –
The number of silicon metal producers insisting on production has fallen in the face of extremely low spot silicon metal prices as April ends. Some regions in Southwest China will customarily cut hydro-power prices at small hydro-power plants in May, but SMM is uncertain about degrees in price cuts. Based on present silicon metal prices, producers can only resume production if prices at small hydro-power plants slide below RMB 0.3/kwh, which, however, is unlikely from electricity price movements this year.
As organic silicon markets have a decreasing demand for silicon metal, #421 silicon metal prices have experienced considerable fluctuations, dampening chemical-grade silicon metal producers. From Shanghai Sigma Metals' bidding results, high-quality silicon metal demand from the aluminum alloy industry is falling further, leading to a considerable drop in high-quality silicon metal prices. Downstream enterprises have generally adopted a wait-and-see stance, only purchasing as needed.
If downstream demand fails to improve during May, silicon metal prices will inch down.
Mainstream traded prices at Huangput port will be around RMB 11,700/mt for #553 silicon metal, RMB 12,700/mt for #441 silicon metal, RMB 13,100/mt for #3303 silicon metal and 14,800/mt for #2202 silicon metal in the following week.