[Minor metal] Silicon Metal Demand Remains Depressed

SHANGHAI, Apr. 8 (CBI China) -- Domestic silicon metal market remained slim, and the price was on downward trend again. Silicon metal sector experienced the weak demand and low operating rates.

    A factory in Sichuan said they have suspended production for 5 months. They will just manage to break even during June due to higher cost than the price. So the situation will be severe this year.

    A factory in Yunnan said the overall operating rates in Yunnan maintained at 15%, and most of them were producing high-grade silicon products with long-term orders, and the local factories with electricity support will be more likely to begin operation.

    Most of traders said the current silicon price has not hit the bottom line yet, and the low-cost water and electricity will further reduce the production cost of silicon metal during high-water period, while the demand has no sign of recovery currently.

    At present, the price at port of 553# silicon was in the RMB 9,000-9,500/mt range, while the price of 2202# silicon in Kunming remains around RMB 10,000/mt.

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