SMM Weekly Forecast on China Silicon Metal Market Sept.1-3

SHANGHAI, Sept.3 (SMM) --

Supply:

Inventories at Hongkai and Yuehua warehouses at Huangpu port were around 25,000 mt. Inventories at two larges warehouses in Yunnan province were less than 30,000 mt. Stocks of Yunnan #3303 silicon metal was relatively high, and producers actively moved such grade silicon metal for cash. Producers in Sichuan and Fujian provinces largely produce #553 which is mainly used at aluminum alloy sector and is shipped out stably. Currently, #421 silicon metal is mainly produced from Xinjiang, Yunnan, and Sichuan, with stable supply and low price reportd.

Demand:

Demand, overseas demand was muted. Although China exported 45,000 mt of silicon metal in July, exports in August was not optimistic. Orders at large traders reduced significantly. According to SMM sources, exports of #3303 silicon powder were brisk in previous years, but contracted sharply in 2012.

Last week, prices of #3303 silicon metal slightly fall, but were stable for other specification of silicon metal. Considering that demand will not change much, SMM expects that prices will largely remain stable, and will only fall slightly for certain specification silicon metal.

Forecast:

SMM expects that mainstream traded prices at Huangput port will be around RMB 10,400/mt for #553 silicon metal, RMB 11,200/mt for #441 silicon metal, RMB 11,800/mt for #3303 silicon metal and 13,200/mt for #2202 silicon metal in the following week.