SHANGHAI, Mar 24 (SMM) - Silicon metal prices fell further this week. As of March 24, the prices of standard #553 silicon metal in east China lost 200 yuan/mt on a weekly basis to 15,900-16,100 yuan/mt, those of above-standard #553 silicon metal dropped 450 yuan/mt to 16,200-16,500 yuan/mt, those of #421 silicon metal in Kunming fell 200 yuan/mt to 16,800-17,100 yuan/mt, and those of #3303 silicon metal declined 200 yuan/mt to 16,800-17,000 yuan/mt. Pessimism filled the market. Manufacturers in north China have lowered their quotations twice this week, while the downstream companies mainly purchased on rigid demand. The silicon metal prices were generally manipulated by the buyers. Some cargo holders became more willing to cut the quotes to mitigate losses.

Polysilicon enterprises maintained stable operating rates. Downstream companies placed some silicon powder orders within the week, and slicon powder users bought goods in a small amount. Supply of industrial silicon metal with low phosphorus and boron content stood low, while that of regular goods was high, which, however, was not preferred.

Aluminium alloy enterprises generally indicated that the unimproved demand has pushed up the primary aluminium alloy inventory. In the short term, aluminium alloy companies will maintain stable operating rates and purchase silicon metal on rigid demand at low prices amid the high silicon metal market supply.

As of March 23, DMC prices dropped to 15,800 yuan/mt, weighing on monomer factories. Some companies planned to suspend production for maintenance this week, hence the operating rates fell, which may cut the DMC output by about 8,300 mt in March.

This week, industrial silicon metal companies in Yingjiang County (Yunnan province), Sichuan province and other places gradually reduced production. The enterprises in Fujian province, Shaanxi province, Chongqing city and other regions generally held a wait-and-see sentiment. In conclusion, silicon metal prices will suffer huge pressure amid the high silicon metal inventory. The market shall keep an eye on the operating rates of silicon metal companies.