SHANGHAI, Jun. 21 (SMM) –
Operating rates at silicon metal producers in Yunnan were around 35% in mid-June, but remained high at producers in this province's Lushui County and the Wenshan Prefecture. Operating rates at silicon metal producers in Sichuan's Liangshan Prefecture edged higher following cuts in electricity prices during the high-water period. Silicon metal production in Fujian was basically stable, but halted in eastern Inner Mongolia and Shanxi Province owing to high electricity prices. The number of producers staying operation in Shannxi, western Inner Mongolia, and Chongqing has fallen recently. However, overall Chinese silicon metal supply remains relatively stable this week.
Demand for low-quality #553 silicon metal has increased this week and boosted sales volumes. Demand for #3303 silicon metal is stable and the sales volume is also steady. Demand for silicon metals with other specifications remains weak, however, and this is especially true of #2202 silicon metal as well as chemical-grade #421 silicon metal. Consumers in silicon metal markets mostly buy on an as-needed basis this week.
Silicon metal supply in Yunnan and Sichuan has increased but fell in North China, while downstream demand is not seen to improve. Hence, generally speaking, silicon metal supply is stable at present, but demand is relatively low. Domestic silicon metal prices thus are expected to edge 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.