SHANGHAI, Jan. 25 (SMM) – Total inventories were around 60,000 at Huangpu port, including 15,000-16,000 mt at Hongkai warehouse, 20,000 mt at Yuehua warehouse, 15,000 mt at Wanxiong warehouse and 10,000 mt at Matou warehouse. Total inventories in two warehouses in Yunnan province were around 50,000 mt. Boosted by price hike, a few producers resumed production to produce #553 and #441 silicon metal.
Demand, most downstream producers were on holiday and other also had plan to halt production. Since most purchases completed pre-holiday stock replenishment, purchases in the following two weeks will be limited.
Given the sluggish demand and high inventories, SMM expects that base metal prices will fall by RMB 50-150/mt in the following week.