SHANGHAI, May 21 (SMM) – Silicon metal stocks at Huangpu Port were 13,000 mt by May 17, with 4,000 mt at Hongkai warehouse, 4,000 mt at Yuehua warehouse, 4,000 mt at Wanxiong warehouse, and wharf inventories at 1,000 mt. In Yunnan, stocks at Guichu Logistics were around 3,000 mt, while those at Honggui were 3,000 mt, leaving total inventories in Kunming around 6,000 mt.
Domestic aluminum alloy producers purchased steadily last week. Polysilicon and organic silicon producers reported higher operating rates, driving up consumption of silicon powder and trichlorosilane, which in turn boosted demand for silicon metal. Overseas purchasers were bearish with power prices of small hydropower stations expected to be lowered in south China, and only bought goods at low prices cautiously. Meanwhile, domestic silicon metal producers were unwilling to move goods at low prices, leaving trading muted.
As Sichuan province will enter high-water season this Saturday, and silicon metal producers with power supplied by hydropower stations may resume full production, prices of low-grade silicon metal will be hurt. SMM expects prices for #553 silicon metal to fall RMB 50-100/mt, with prices of other categories holding steady.