Worries over restrictions, trade tariffs buoy China's silicon export in Jul

SHANGHAI, Sep 27 (SMM) – China's export of metal silicon extended its increase in July, and reached the highest level in the year, at 84,000 mt, showed China Customs data. This was up 12.6% from June and up 22.7% from a year ago. 

Worries over domestic export restrictions, trade war threat, and steadily rising overseas demand accounted for the increase, SMM believes. 

Export of silicon registered a 4-29% year-on-year growth rate each month from January to July, except for February and April, when Chinese New Year holiday and changes in customs clearance policies dragged down the exports. 

Some exporters arranged shipment in advance in July for cargoes ordered for August, given market talks that some export restrictions will be imposed on August 1. 

New round of China-US trade tariffs also made exporters ship forward cargoes in advance. This brought China’s overall exports in July up by 12.2% year on year in US dollars. Surge in exports buoyed sea freight, especially for ocean routes to Europe and the Americas. In order to reduce potential losses from higher sea freight, exporters tended to make their shipment as early as possible. 

From January to July in 2018, China exported 502,000 mt of silicon, up 10% from last year, China Customs data showed. Monthly average exports stood at some 72,000 mt for the first seven months of this year. SMM expects export of silicon to dip to around 70,000 mt in August.