SHANGHAI, Jul. 15 (SMM) –
Supply: Silicon metal stocks at Huangpu Port were 16,500 mt by July 12, with 6,000 mt at Hongkai warehouse, 6,000 mt at Yuehua warehouse, 3,000 mt at Wanxiong warehouse, and wharf inventories at 1,500 mt. In Yunnan, stocks at Guichu Logistics were 3,500 mt, while those at Honggui were 4,500 mt, making total inventories in Kunming at around 8,000 mt.
Demand: Two medium scaled aluminum alloy producers from Japan will invite tenders in China mainly for low-grade silicon metal this week. Meanwhile, several domestic aluminum alloy producers also had plans to issue bids for #553 and #551 silicon metal. Consumption for organic silicon and polysilicon is expected to hold steady.
Price Forecast: The continuous rainfalls in the latter half of July, though expected to impede shipments from Yunnan and Sichuan, will help ease the power shortages in Yingjiang and Liangshan, encouraging local silicon metal producers to restart operation. Besides, silicon metal trading remained modest, and some producers may possible cut selling prices. As a result, SMM expects silicon metal prices to edge down RMB 50-100/mt this week.