With stable supply and demand, spot silicon metal prices are likely to continue fluctuating rangebound

This week, spot silicon metal prices remained stable. As of November 14, the ex-factory price of standard #553 silicon metal in east China was 11,600-11,700 yuan/mt, flat WoW. The ex-factory price of above-standard #553 silicon metal was 11,700-12,000 yuan/mt, flat WoW. The ex-factory price of #421 silicon metal was 12,100-12,300 yuan/mt, flat WoW. The ex-factory price of 3303# silicon metal was 12,800-12,900 yuan/mt, flat WoW. During the week, the quotations from silicon metal producers and the trend of the most-traded Si2412 futures contract diverged. The producers' quotations remained stable, while the most-traded Si2412 contract continued to fluctuate downward, hitting a weekly low of 12,310 yuan/mt and closing at 12,485 yuan/mt on Thursday. The weak silicon futures prices increased spot market liquidity. Due to the impact of futures and spot prices, some silicon companies slightly reduced prices for orders, but overall, the prices remained stable.

At the beginning of this month, there were reports of a possible 0.06 yuan/kWh increase in electricity prices for some silicon companies in Ili, Xinjiang (affecting five local silicon companies). The details of the increase and its implementation are still under discussion. On Thursday, the Guangzhou Futures Exchange announced adjustments to the designated delivery warehouses for silicon metal futures, which may have some impact on the subsequent market. The supply and demand fundamentals of silicon metal remain basically stable with no sudden changes, and spot silicon metal prices are likely to continue fluctuating rangebound.