SMM Weekly Forecast on China Silicon Metal Market (Jun. 11-15)

SHANGHAI, Jun. 8 (SMM) –

Supply:
According to SMM survey, silicon metal stocks at Huangput port's Hongkai and Yuehua warehouses are around 20,000 mt this week, and around 15,000 mt at two major warehouses in Yunnan's Kunming. This means that overall silicon metal stocks have fallen by 10,000-20,000 mt since mid-May. Owing to low silicon metal prices but high production costs for the time being, most silicon metal producers have no plan to start production over the near term, standing on the sidelines instead.

Demand:
Silicon metal demand from aluminum alloy and organic silicon is stable this week. Polysilicon markets remain sluggish, while more trichlorosilane and silicon metal powder producers opt to halt production. In the face of slack silicon metal demand, downstream producers are wary of purchases. 

Forecast:
As silicon metal supply still exceeds demand, SMM sees silicon metal prices moving slightly lower in the coming week.

Mainstream traded prices at Huangput port will be around RMB 11,300/mt for #553 silicon metal, RMB 12,000/mt for #441 silicon metal, RMB 12,600/mt for #3303 silicon metal and 13,800/mt for #2202 silicon metal in the following week.