SHANGHAI, Apr.1 (SMM) --

Supply:

Total inventories were around 31,000 at Huangpu port, including 10,000 mt at Hongkai warehouse, 8,000 mt at Yuehua warehouse, 10,000 mt at Wanxiong warehouse and 3,000 mt at Matou warehouse. Total inventories in two warehouses in Yunnan province were around 30,000 mt.

Demand:

Most overseas aluminum alloy producers had limited raw material sources, but they did not increase purchase as they expected silicon metal prices to fall. In China’s domestic market, aluminum alloy producers also adopted a wait-and-see attitude, while demand from organic silicon metal, polysilicon metal and silicon metal powder producers remained stable.

Forecast:

Prices for silicon metal have declined steadily in recent two months, but power cost has not fallen at most producers in south China. This forced many silicon producers to halt production. However, the limited production suspension will not reverse downward trend of silicon metal prices. SMM expects that silicon metal prices will fall by RMB 50-100/mt in the following week.