SHANGHAI, Dec 14 (SMM) – SMM expects prices of silicon to hover at the year's low through December, with pressure from high social inventories and sluggish downstream demand.
As of early December, lower operating rates across downstream aluminium alloy, organosilicon, and polysilicon plants declined prices of metallurgical grade silicon to the lowest this year.
Oversupply began to weigh on prices from the start of November, even as the dry season lowered supplies in Sichuan and Yunnan provinces. Prices of chemical-grade silicon also fell significantly.
Oversupply resulted in maximum-level social inventories of silicon metal across warehouses at Huangpu port and Kunming area in November. Cargo turnover also declined last month.
In November, slow downstream purchases accumulated inventories at silicon plants and traders. Expanded capacity in China's northern area of Xinjiang offset production cuts across silicon mills in the southern provinces amid dry season, and this grew pessimism in the market.
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