Silicon Metal Prices Temporarily Stable Due to Inspection of Electricity Prices by Local Governments

SHANGHAI, May 24 (SMM) -- The National Development and Reform Commission (NDRC) along with Ministry of Industry and Information Technology (MIIT), Ministry of Supervision, Ministry of Environmental Protection, The State Electricity Regulatory Commission (SERC) and National Energy Administration issued a notice on Electricity Price Inspection through out the Country, and decides to conduct electricity price inspection throughout the nation as of June 1st with the purpose to save energy and cut emission. This move further inducted Central Government's determination and force to adjust electricity prices at local regions.  

Any specific regulation rule by local government to adjust electricity prices has not released yet, but rumors regarding such rules were prevailing in the market. Market views were mixed with regard to the impact on silicon production in 2H 2010. SMM believes that producers will keep firm offers as the market is waiting for policies released by local government to adjust electricity prices. In this context, the possibility for silicon prices to fall further is low. On Monday, offers of domestic silicon metal remain stable. The SMM latest mainstream offers at Huangpu port were between RMB 11,800-12,300/mt for #553 silicon metal, between RMB 12,500-12,800/mt for #441 silicon metal, between RMB 13,200-13,500/mt for #3303 silicon metal and between RMB 14,000-14,400/mt for #2202 silicon metal.

To contact the writer on this report: nauturewang@smm.cn

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