Greater deliveries before VAT cuts slow declines in silicon prices

SHANGHAI, Mar 29 (SMM) – Declines in the prices of silicon products slowed from a week ago in the week through Friday March 29, underpinned by greater deliveries from silicon mills ahead of a lower value-added tax (VAT) on April 1.

SMM learned that downstream buyers and traders urged silicon producers to accelerate shipments this week before the VAT cut.

Next week, the incentive on purchases will cease. While a lower VAT will have a minimal impact on prices of silicon, market pessimism will extend the decline in silicon prices in April. Domestic consumption and exports are expected to continue to be poor in the weeks ahead.   

In the week ended Friday March 29, traded prices of non-oxidised #553 silicon at Huangpu port stood at 10,900-11,100 yuan/mt, and oxidised #553 silicon at Tianjin port at 11,400-11,600 yuan/mt, SMM assessed.