SHANGHAI, May 23 (SMM) - Silicon metals prices dropped more rapidly last week. The prices of 553# silicon without oxygen stood at 16,900-17,300 yuan/mt in east China, down 1,000 yuan/mt or 6% from a week ago, while that of 553# silicon with oxygen also fell 1,000 yuan/mt to 18,200-18,500 yuan/mt. 3303# silicon experienced a weekly drop of 750 yuan/mt to 20,400-20,600 yuan/mt.
Last week, all specifications of metallurgical-grade silicon metal saw a rapid drop in prices. In addition to relatively weak downstream demand, silicon traders’ stronger willingness to ship as well as market pessimism on expected falling electricity prices in Sichuan and Yunan in the wet season are also among the causes for constantly falling silicon metal prices.
The prices of 421# silicon (for silicone) were 21,300-21,500 yuan/mt in east China last week, down 650 yuan/mt week-on-week. A small number of orders have been placed by silicone manufacturers recently, but the centralised bidding will mostly be carried out this week. And affected by the weakness of the silicon metal market, the expected transaction prices with silicone manufacturers are expected to drop from the previous session.
On the demand side, domestic silicone and aluminium alloy sectors were less interest in restocking because of the constantly falling silicon metal prices, dropping finished products prices as well as poor orders. Overseas, production cuts were found across downstream enterprises in countries such as Japan due to supply chain tensions and other reasons, hence the consumption of silicon metal dropped, so were the orders.
On the supply side, as the traders were willing to sell for fear of further price declines, and downstream players forced down the prices further in a buyer’s market. In this cases, there are low-priced sources of goods circulating in the market from time to time. With no obvious bullish factors to boost the silicon market, silicon metal prices are likely to fall again in the near term.
