Home / Metal News / Downstream Demand for Silicon Metal Suppressed by Market Pessimism and the Wet Season

Downstream Demand for Silicon Metal Suppressed by Market Pessimism and the Wet Season

iconMay 31, 2022 13:20
Source:SMM
According to market feedback, some silicon plants will suspend the production of furnaces after consuming existing raw material stocks, while some are planning to firm the prices amid high raw material prices. To sum up, silicon metal prices are likely to fall in the near term, but...

SHANGHAI, May 31 (SMM) - Silicon metal prices fell quickly last week. Specifically speaking, the prices of 553 # silicon without oxygen were 16,000-16,300 yuan/mt in east China, down 950 yuan/mt or 6% week-on-week, 553 # silicon with oxygen were between 17,000-17,400 yuan/mt, down 1,150 yuan/mt or 6% from a week ago, and 3303# silicon were around 19,400-19,600 yuan/mt, down 1,000 yuan/mt or 5% on a weekly basis.

Silicone monomer plants began to inquire at month-end, but only a small number of orders were placed with prices of 20,400-20,800 yuan/mt (by acceptance, delivery to factory). Bidding of buyers have been postponed to this week and most transactions are still under negotiation.

Sichuan and Yunnan entered the wet season on May 25 and June 1 respectively. Therefore, the expected falling of electricity prices in Sichuan and Yunnan, the active shipment of large plants in north China as well as the sell-off in panic by some traders have together hold silicon metal prices in the downward trajectory, and the market sentiment is still relatively pessimistic. Currently, downstream players mostly restock on rigid demand, while the traders purchase based on orders received.

The trading market improved slightly from the week before thanks to the release of rigid demand. However, silicon metal prices are already below the high-end of production cost range in light of poor demand and sell-off among sellers, with more and more manufacturers potentially suffering losses, and some have already reduced the production. According to market feedback, some silicon plants will suspend the production of furnaces after consuming existing raw material stocks, while some are planning to firm the prices amid high raw material prices.

To sum up, silicon metal prices are likely to fall in the near term, but will be underpinned by the cost side.

Spot

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All