SHANGHAI, Jun. 15 (SMM) –
According to SMM survey, silicon metal stocks at Huangpu port's Hongkai and Yuehua warehouses are above 25,000 mt this week, and above 17,000 mt at two major warehouses in Yunnan's Kunming. As electricity prices are cut in Yunnan due to the high-water period, operating rate at silicon metal producers there has gradually increased during June, and will likely reach around 40% at the end of the month. Production at producers in Sichuan and Fujian is relatively stable at present, but remains pessimistic at producers in Hunan, Guizhou, and Guangxi. Silicon metal producers' production in Xinjiang is normal, but production at producers in other regions in North China has fallen sharply. However, overall silicon metal supply rallies steadily this week.
Electricity prices have been slashed as the high-water period arrives, but silicone metal prices are also falling, as downstream producers mostly take a wait-and-see stance and only buy as needed. The supply of #3303 and #551 silicon metal is stable in recent days in Yunnan, but the supply of #421 is relatively small.
Recent silicon metal supply has increased, but demand growth is slow. Coupled with current operating rates at silicon metal producers in Yunnan and Sichuan, domestic silicon metal prices are likely to continue to inch down in the coming week.
Mainstream traded prices at Huangpu port will be around RMB 11,200/mt for #553 silicon metal, RMB 11,800/mt for #441 silicon metal, RMB 12,400/mt for #3303 silicon metal and 13,600/mt for #2202 silicon metal in the following week.