Silicon Prices Stabilise as Cargo Holders are Unwilling to Lower Prices

SHANGHAI, Apr 14 (SMM) - Silicon metal prices fell slightly this week. As of April 13, the prices of above-standard #553 silicon metal in east China lost 250 yuan/mt from a week earlier to 15,500-15,700 yuan/mt, those of #441 silicon metal dropped 150 yuan/mt to 16,100-16,300 yuan/mt, those of #421 silicon metal (used in silicone) dipped 150 yuan/mt to 17,400-17,500 yuan/mt and those of #3303 silicon metal fell 250 yuan/mt to 16,600-16,900 yuan/mt. Silicon metal prices continued to fall amid weak market sentiment. Silicon factories in south and north China suffered losses to varying degrees. In Xinjiang, electricity costs of silicon enterprises diverged and the profits of a small number of companies with high electricity costs were extremely low. Poor profits, coupled with the poor shipments and high inventory, caused enterprises to stop production. Under the high costs, silicon enterprises were unwilling to ship at low prices and the prices of low-grade silicon metal stabilised.

The operating rates of aluminium alloy enterprises were stable with slight downside potential amid weak terminal demand. As such, aluminium alloy enterprises purchased silicon metal as needed.

The operating rates of silicone enterprises changed little. The prices of DMC stabilised at 14,800-15,500 yuan/mt. Silicone monomer factories made inquiries actively but rarely purchased.

The operating rates of polysilicon enterprises were stable and the new capacity continued to ramp up, which steadily drove up the demand for silicon metal. Grinding plants maintained their silicon metal stocks at a low level as silicon metal prices continued to stay low.

The spot inventory of silicon enterprise was high. Although the cargo holders held the prices firm, downstream enterprises and traders still intended to force down the prices. It is expected that silicon metal prices will stabilise next week.