Silicon prices slip to nearly three-year low in Jul

SHANGHAI, Aug 14 (SMM) – Prices of all specifications of silicon metal trended downwards in the first half of July, with declines exceeding 1,000 yuan/mt compared with a year ago. Prices of non-oxidised #553 silicon had slipped to nearly a three-year low as of mid-July. 

Declines in prices slowed in the second half of July as market pessimism eased after heavier losses across high-costs capacity triggered greater cutbacks. Pent-up demand from traders and downstream consumers released on improved market sentiment. This rallied spot trades and underpinned prices of silicon. 

Silicon prices had kept falling for months until mid-July, which drove traders and downstream producers to keep inventories at lows. 

Stockpiling by domestic consumers and exporters for some three weeks since the second half of July lowered in-plant stocks at silicon producers. This prompted producers of low-grade silicon to take the initiative and raise offers. 

However, silicon prices are unlikely to sustain their growth in August given the summer break in major export destination countries and limited rebound in downstream operating rates in a continued seasonal lull. A real price rally is expected in September.