SHANGHAI, Apr. 15 (SMM) – As of April 12, silicon metal stocks were 5,000 mt at Hongkai warehouse, 5,000 mt at Yuehua warehouse, 5,000 mt at Wanxiong warehouse, and wharf inventories were 3,000 mt, making a total of 18,000 mt at Huangpu Port. In Yunnan, stocks at Guichu Logistics were 8,000 mt, while those at Honggui were 8,000 mt, combined with some 4,000 mt stocked at several smaller warehouses, total inventories were less than 20,000 mt. Supply of low-grade #553 silicon metal fell short as was high electricity prices in south China kept operating rates at silicon metal producers low.
Silicon metal demand in overseas market improved slightly this month although many buyers were still bearish to prices. In domestic markets, purchases downstream increased after the Qingming Festival. Some silicon metal producers holding high inventories lowered prices for sales with high-water season in south China shortened.
As operating rates at many producers in south China will continue to fall in the latter half this month, supply #553 silicon metal should remain tight, with prices expected to hold steady in the coming week. However, limited demand for high-grade silicon metal and persistently high inventories may drive their prices to fall RMB 50-100/mt.