SHANGHAI, Dec.3 (SMM) –
Total inventories were between 32,000-36,000 mt at Huangpu port, including 12,000-14,000 mt at Hongkai warehouse, 12,000-15,000 mt at Yuehua warehouse, 3,000 mt at Wanxiong warehouse, and 5,000 mt at Matou warehouse. Total inventories at two warehouses in Kunming, Yunnan province totaled 40,000 mt.Electricity prices were hiked due to the arrival of low-water period on south China, increasing production costs at silicon metal producers. In this context, many silicon metal producers were forced to cut output. In this context, SMM expects that silicon metal output will fall in December.
Market demand was still largely for low-grade silicon metal. Last week, prices for #553 and #441 silicon metal rose, but downstream price acceptance was low, resulting in quiet transactions. In overseas market, export orders increased, and FOB silicon metal prices also advanced.
Last week, silicon metal producers were still reluctant to move goods and hiked offers, resulting in tight supply of goods in the market. However, prices for high-grade silicon metal did not increase due to limited demand. SMM thus expects that prices for low-grade silicon metal will continue to advance slightly in the following week.