SHFE Market Movement on May 31st, 2010 (Monday)

SHANGHAI, May 31 (SMM) -- Inquiries were limited in domestic silicon metal spot markets today due mainly to the prevailing wait-and-see sentiment, and transactions were lukewarm as a result. According to latest SMM offers at Huangpu port, offers are RMB 11,400-11,800/mt for #553 silicon, RMB 12,100-12,500/mt for #441 silicon, RMB 13,000-13,400/mt for #3303 silicon, and RMB 13,900-14,300/mt for #2202 silicon.
Regional electricity prices in China will all be adjusted from June, with the electricity prices slightly higher than the same period of 2009. The growing electric power costs will exert heavy pressure on operation of silicon producers as domestic spot silicon prices move on a downward track. However, domestic and international demand will remain the major factor to determine domestic silicon price trends in June. Silicon downstream inquiries begin to grow currently, and purchasing interest is stronger despite of limited actual trading volumes. SMM believes silicon prices will fall further if downstream demand fails to improve in the short term, or silicon prices will stabilize again as long as downstream demand recovers.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To contact the writer on this report: <a href="mailto:naturewang@smm.cn">naturewang@smm.cn</a>
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