SHANGHAI, Jul. 27 (SMM) – The supply of low-quality silicon metal in Yunnan is tight for the time being, and helps producers raise price quotations. SMM believes that, although overseas markets and domestic demand downstream have yet to improve noticeably, Chinese silicon meal prices are likely to increase since earlier prices were below production costs.

SMM has learnt that as major Chinese traders stepped up purchases of low-quality silicon metal last week, the supply of #553 and #441 silicon metal becomes tight in Yunnan markets. On one hand, the average operating rate at silicon metal producers has been low this year and leads to low silicon metal output. On the other, silicon metal producers have been unwilling to move goods at low prices. According to SMM sources, some silicon metal producers in Yunnan have raised price quotations, and actual traded prices have also inched up.