SHANGHAI, Jul. 27 (SMM) –
According to SMM survey, silicon metal stocks at Huangpu port's Hongkai and Yuehua warehouses stay above 30,000 mt this week, but around 20,000 mt at two major warehouses in Yunnan after moving goods in large quantities last week. The supply of low-quality silicon metal in Yunnan is tight for the time being, with demand for #441 silicon metal even exceeding supply. Producers of #441 silicon metal in Xinjiang sold aggressively last week and alleviated cash pressures at some producers which thus held prices firm later. Silicon metal production in Sichuan and Fujian, though, is stable this week.
Major large domestic traders have chosen to buy silicon metal in the recent two weeks as some consider the timing right for replenishing stocks. However, domestic demand downstream has yet to improve appreciably, with overseas markets reporting no new large orders.
The average operating rate during the high-water period at China's silicon metal producers remains a low level in recent years, an indication of sluggish demand downstream. Silicon metal producers try to raise price quotations, and traded prices have actually increased some this week. But this cannot change the fact this year's silicon metal prices have remained low, and SMM believes that Chinese silicon metal prices will stay within ranges in the coming week.
Mainstream traded prices at Huangpu port will be around RMB 10,200/mt for #553 silicon metal, RMB 10,800/mt for #441 silicon metal, RMB 11,700/mt for #3303 silicon metal and 12,900/mt for #2202 silicon metal in the following week.