SHANGHAI, Mar. 1 (SMM) –
Total inventories were around 60,000 at Huangpu port, including 15,000mt 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.
Some silicon metal producers gradually resumed production after Chinese Lantern Festival, but most producers still have not resumed production. According to SMM sources, many aluminum alloy producers delayed production date due to overcapacity in the industry, which is the major reason behind sluggish consumption of silicon metal after Chinese New Year holiday. Besides, cash flow became tight as producers had to pay high electricity charges at the end of month, and producers lowered offers for cash generation, lowering prices for low-grad silicon metal.
Wet season will arrive in Fujian province in March, which will lower prices for electricity. In that case, supply of silicon metal will increase. SMM believes that prices for low-grade silicon metal will slightly fall by RMB 50-100/mt in the following week.