SHANGHAI, May 25 (SMM) –
Silicon metal stocks in Huangpu warehouses and ports were only 40,000 mt this week, and 30,000 mt in warehouses in Yunnan’s Kunming. Operating rates at silicon metal producers in Sichuan and Yunnan edged higher last week, but most producers in Guizhou, Hunan, and Guangxi were out of production. Operating rates at producers in Xinjiang have remained high due to low electricity prices.
Demand from aluminum alloy industry remained stable, and large enterprises in the sector are bidding for silicon metal. Operating rates at polysilicon metal producers fell, with silicon metal powder and trichlorosilane having low demand for silicon metal. Despite demand overseas, most producers would rather develop domestic markets than incurring losses from low prices overseas.
Silicon metal supply still exceeds demand, which will cause silicon metal to fall in the coming week, since silicon metal producers will increase production in June.
Mainstream traded prices at Huangput port will be around RMB 11,500/mt for #553 silicon metal, RMB 12,300/mt for #441 silicon metal, RMB 12,700/mt for #3303 silicon metal and 14,200/mt for #2202 silicon metal in the following week.