SMM Weekly Forecast on China’s Silicon Market

SHANGHAI, Sep. 17 (SMM) –

Supply

Operating rates at domestic silicon metal producers recovered significantly, and number of furnaces re-kindled before October increased significantly. With the coming the low-water period, many producers were still unwilling to move goods due to the expectation that prices will rise as many downstream producers will replenish stocks for production during the low-water period. In this context, supply of silicon metal in the spot market was still slightly tight. 

Demand

Downstream demand was strong. Demand from aluminum alloy producers were relatively stable, but demand from polysilicon and organic silicon increased significantly due to capacity expansion.

Analysis

Offers from cargo-holds will be firm amid strong demand in the short term, but prices will gradual stabilize later with outflow of output from high operating rates.

Forecast

SMM believes that mainstream traded prices of silicon metal at Huangpu port will be around RMB 13,200/mt for #553 silicon metal, will be around RMB 14,100/mt for #441 silicon metal, will be around RMB 14,800/mt for #3303 silicon metal and around RMB 15,500/mt for #2202 silicon metal in the following week.

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn