SHANGHAI, Nov 14 (SMM) - Prices of silicon metal remained stable last week. As of November 10, prices of standard #553 silicon metal in east China were 19,500-19,800 yuan/mt; above-standard #553 silicon metal 20,700-21,000 yuan/mt; #441 silicon metal 21,200-21,400 yuan/mt; and #421 silicon metal 21,600-21,800 yuan/mt. The silicon metal market was in stalemate this week. The top two silicon manufacturers in Xinjiang (Shihezi and Changji) were affected by the pandemic to varying degrees, with a production curtailment of over 50% and roughly 16% respectively. The resumption time is uncertain. Meanwhile, the demand from silicone and aluminium alloy sectors was weak and the bids of polysilicon were released slowly. Therefore, the silicon metal transactions were flat, and silicon prices remained stable amid the weak supply and demand.
The operating rates of secondary aluminium alloy enterprises in Guangdong and Chongqing fell slightly due to the spread of the pandemic. The secondary aluminium alloy enterprises purchased silicon metal as needed due to their poor profits. The operating rates of silicone enterprises remained low. In the early stage, the output of silicone monomer companies declined as some enterprises undertook maintenance. But the supply was still in surplus and the prices of DMC remained low. In mid to late-November, some monomer companies will resume the production and the operating rates are expected to increase slightly. The polysilicon supply continued to increase as the new capacity was ramping up the production. In the mid and late-November, about 80,000 mt of polysilicon capacity will be overhauled and is expected to resume in mid-December.
As the dry season is approaching in Sichuan and Yunnan, the costs increased and enterprises were less willing to lower the prices. Meanwhile, amid the off-season in the aluminium alloy and silicone markets, some traders held a bearish outlook and purchased as needed. It is expected that silicon metal prices will remain stable this week.