China Silicon Metal Price Forecast (Feb. 25-Mar. 1)

SHANGHAI, Feb. 25 (SMM) –

Supply:

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 45,000 mt. Operating rates at producers during the first post-holiday week were still low, as producers have not fully resume production. Boosted by price hike, a few producers resumed production to produce #553 and #441 silicon metal.

Demand:

Silicon metal traders gradually returned to market after holiday during the first week after Chinese New Year holiday, and inquiries from overseas market increased. However, a few domestic silicon metal producers were still on holiday and downstream producers with stocks built before holiday had no purchasing demand. Therefore, silicon metal market was relatively quiet.

Forecast:

After the Lantern Festival, some silicon metal producers will resume production, which will push operating rates higher. Demand from downstream producers, however, will not improve much, which will leave silicon metal market in supply surplus. Nevertheless, it still takes time for producers to ignite furnaces, and SMM thus expects silicon metal prices will stabilize in the coming week.