Exports of silicon metal drop to lowest in 3 years

SHANGHAI, May 28 (SMM) – China's exports of silicon metal in April shrank 20.4% on the month to the lowest in nearly three years of 57,000 mt, after they gained 92.2% on the month in March, showed data from China Customs on Tuesday May 28. 

On a yearly basis, exports decreased by 11.8% in April, after a drop of 1.9% in March. This lowered exports in January-April by 10.6% on the year, to 234,000 mt. 

April saw only a few spot trades with overseas consumers, except for regular deliveries for long-term contracts. Sluggish overseas demand drove some domestic major silicon producers to postpone their shipments. 

SMM learned that inventories at domestic traders depleted slowly in April, and stocks at ports remained high on the year. Inventory backlog caused poor cash flows at traders and constrained their purchases. 

For May, tenders by foreign downstream producers for the second half of the year will improve trades. However, the actual demand will slow to recover and this will cap any rebound in silicon metal exports in May.