SHANGHAI. Oct. 22 (SMM) –
Inventories at Hongkai and Yuehua warehouses at Huangpu port were still less than 20,000 mt. Inventories at two larges warehouses in Yunnan province were over 40,000 mt. As electricity prices are quiet likely to increase with the nearing of low-water period, silicon metal producers speeded up production.
The PV industry suffered from a heavy blow and shall not be recovered in the short term.Demand from organic and polysilicon metal industries remain sluggish. Disputes over Diaoyu Island remain, still negatively affecting downstream demand. Therefore, many silicon metal producers lacked confidence towards price outlook.
Offers of silicon metal were relatively firm with the nearing of high-water period, so prices of silicon metal slightly increased from a week earlier. However, demand for silicon metal, largely low-grade #553 silicon metal, remained weak. SMM therefore expects that prices of low-grade silicon metal may increase, while prices of high-grade silicon metal may remain stable.
SMM expects that mainstream traded prices at Huangput port will be around RMB 10,500/mt for #553 silicon metal, RMB 11,200/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.