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The Market Outlook of Silicon Metal Prices was Gloomy and Silicon Metal Prices Continued to Decline amid Strong Supply and Weak Demand
May 17, 2022 15:26CST
Source:SMM
In April, China's silicon metal prices maintained a general downward trend, while the silicon metal prices in Yunnan were higher than that in other regions. As of May 11, the prices of 553# silicon metal without oxygen stood at 18,200-18,300 yuan/mt at Huangpugang Port, down 700 yuan/mt or 4% MoM. The prices of 3303# silicon metal were 21,200-21,300 yuan/mt, down 1,150 yuan/mt or 5% MoM. The prices of 421# silicon metal recorded 21,300-22,200 yuan/mt, down 850 yuan/mt or 4% from a month ago.

SHANGHAI, May 17 (SMM) - In April, China's silicon metal prices maintained a general downward trend, while the silicon metal prices in Yunnan were higher than that in other regions. As of May 11, the prices of 553# silicon metal without oxygen stood at 18,200-18,300 yuan/mt at Huangpugang Port, down 700 yuan/mt or 4% MoM. The prices of 3303# silicon metal were 21,200-21,300 yuan/mt, down 1,150 yuan/mt or 5% MoM. The prices of 421# silicon metal recorded 21,300-22,200 yuan/mt, down 850 yuan/mt or 4% from a month ago.

In terms of supply, the operating rates of silicon factories in the north-west and south-west regions were basically stable. In terms of demand, as enterprises in east, south and north-east China were affected by the pandemic to varying degrees, the consumption was poor. As a result, the contradiction between supply and demand led to the extremely pessimistic market sentiment. In this case, traders mainly purchased according to orders on hand to reduce the cost and avoid risks, while downstream buyers purchased as needed, hence the market transactions were still relatively poor.

In terms of downstream operating rates amid the pandemic, the operating rates of polysilicon basically maintained full-load, but the release of new production capacity was slower than expected. Affected by the pandemic, the operating rates of some silicone enterprises once decreased by 20-40% and resumed to normal level in late-April. Aluminium alloy enterprises were mainly in production suspension, hence the operating rates fell to the lowest in nearly three years.

On the supply side, the silicon plants in Sichuan resumed the production in late-April and early-May. Those in Nujiang Zhou, Yunnan province resumed the production and the production stabilised in April. Most of the silicon plants in Dehong Zhou plan to commence production in late-May or early-June. The weak demand and supply surplus are the main reasons for the long-term sluggish silicon prices. As the pandemic in Shanghai has eased, the downstream demand is expected to be gradually released in late-May. However, during the wet season in Sichuan and Yunnan, the increasing supply in the south still put pressure on the silicon prices. As a result, the silicon prices are expected to decline slightly amid the negative market sentiment.

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