Low-Grade Silicon Metal Prices To Still Outperform High-Grade Ones

As of November 30, prices of standard 553# silicon, above-standard 553# silicon and 441# silicon in East China were 14,200-14,400 yuan/mt, 14,600-14,800 yuan/mt and 15,000-15,200 yuan/mt respectively, up 150 yuan/mt or 1% WoW, 100 yuan/mt or 1% WoW and up 50 yuan/mt WoW, while those of 421# silicon and 3303# silicon were stable at 15,700-15,900 yuan/mt and 15,600-15,800 yuan/mt respectively. Traded prices of low-grade silicon increased during the week, mainly because suppliers showing price hike and reluctance to sell made downstream buyers purchasing silicon on a need-to basis. On the one hand, with rising costs and low silicon prices in dry season, the operating rate of silicon plants dropped sharply in south China, especially Sichuan and Yunnan. Moreover, silicon plants suffered losses. Under this circumstance, even if there is spot inventory left, the silicon plants were less willingness to keep shipping goods. On the other hand, in spite of low intention of refilling stocks, suppliers’ offer hike made downstream buyers purchasing silicon on a need-to basis.

Silicon supply decreased in Sichuan and Yunnan amid production cuts. Meanwhile, the operating rate of silicon plants in north China remained high, and local leading plants kept prices firm and had low willingness to sell. Under this circumstance, high-grade and low-grade silicon market will saw a mismatch between supply and demand. Low-grade silicon prices may remain strong next week, narrowing the gap to high-grade silicon prices.