SHANGHAI, May 18 (SMM) –
Silicon metal producers in Sichuan Province have begun to coordinate electricity prices for high-water period with related authorities as May ends. While some producers stayed out of production owing to losses in Sichuan, a small number of producers resumed operation again, leading to a slight increase in market supply this week. However, more silicon metal producers in Guizhou Province opted to suspend production in May on account of falling silicon metal prices and high electricity prices. This led to a decline in the region’s silicon metal supply.
Supply for #441 and #421 silicon metal has recently exceeded demand. Silicon metal demand from aluminum alloy and organic silicon industries are stable, but most polysilicon producers have halted operation. Hence, overall silicon metal demand remains sluggish this week.
The long-standing slack downstream demand has forced a rising number of domestic silicon metal producers to stop production, but due to high silicon metal stocks, market supply still exceeds demand. In this context, SMM expect silicon metal prices will continue to fall in the coming week.
Mainstream traded prices at Huangpu port will be around RMB 11,500/mt for #553 silicon metal, RMB 12,300/mt for #441 silicon metal, RMB 12,800/mt for #3303 silicon metal and 14,500/mt for #2202 silicon metal in the following week.