Silicon Metal Prices Fell This Week And To Swing On A Weak Not Short Term

Market review: Mainstream traded price of silicon metal declined this week. As of January 11, prices of standard 553# silicon and 3303# silicon in East China were stable at 15,000-15,200 yuan/mt and 15,800-16,000 yuan/mt, while those of above-standard 553# silicon, 441# silicon and 421# silicon were 15,300-15,500 yuan/mt, 15,600-15,700 yuan/mt and 16,200-16,300 yuan/mt respectively, down 200 yuan/mt WoW, 100 yuan/mt WoW and 100 yuan/mt WoW. Weighed down by macro news and funds condition, the most-traded silicon metal futures contract sharply fell to below 14,000 yuan/mt on January 5, quickly cooling down buying appetite for spot silicon this week. More downstream buyers were in wait-and-see mood. The most-traded silicon metal futures contract hovered around 13,750-13,900 yuan/mt. Price of 421# silicon in Tianjin Port and Huangpu Port was 15,200-15,400 yuan/mt (self-pickup), lower than the quotations of silicon plants. Traders, grinding plants and polysilicon producers and other users switched to 421# silicon products, thereby cutting inquiries and transactions of silicon plants. Some silicon plants who had difficulty shipping lowered their offers to a certain extent.

Short-term silicon spot price will slightly swing on a weak note. Silicon plants will be more inclined to keep price firm. It is expected that silicon price will have limited room to dip.