Silicon Metal Prices Rose on Intensive Downstream Restocking Demand in Feb

SHANGHAI, Mar 11 (SMM) - The silicon metal market performed quite well in February, and the varieties all posted an upward trend. As of March 9, the prices of 553# silicon metal without oxygen stood at 21,800-21,900 yuan/mt at Huangpugang, up 3,000 yuan/mt or 16% month-on-month; that of 441# silicon metal were 23,800-24,000 yuan/mt, up 3,050 yuan/mt or 15% MoM; prices of 421# silicon metal recorded 24,300-24,800 yuan/mt, up 2,850 yuan/mt or 13% from a month ago.

The operating rates of downstream aluminium alloy enterprises increased in mid-February, and inquires and purchases both picked up accordingly. Silicone and polysilicon companies also began to bid intensively in the latter half of the month, coupled with rising overseas orders, the silicon metal transactions were relatively heated. On the supply side, silicon factories’ operating rates were at a low level throughout the year due to the dry season, and their quotations also went all the way up in light of rising prices of petroleum coke, abundant orders and less financial pressures.

Some silicon factories in Nujiang (Yunnan province), Leshan (Sichuan province) and Hunan have increased their production in March. Meanwhile, there are also some maintenance in Fujian and Xinjiang. As the prices of polysilicon and silicone stand high, downstream players are willing to accept high-priced silicon metal. It is expected that the price may maintain an upward trend in March on the combination of abundant orders received by silicon factories. But the market should also be alert to the price risks caused by the increase in supply in the second half of the month and the change in market sentiment.