[Minor metal] Silicon Market Stabilizes Recently

SHANGHAI, Apr. 29 (CBI China) -- Recently, silicon metal prices experienced limited fluctuations in domestic market, with traded price for low-grade silicon in the RMB 9,000-9,500/mt range and traded price for 2202# silicon around RMB 10,300/mt.

    About 50% of factories in Sichuan province maintained production, and their operating rates will likely increase along with the increasing hydroelectric power. Costs of 553# silicon were about RMB 8,500/mt, and the factories took conservative attitude toward market outlook.

    Costs were relatively higher in Guizhou province, only select large factories got support from local government and maintained production. According to local factories, the local government will likely introduce policies concerning electricity price and subsidy to stimulate the production, as the factories in Guizhou province will receive greater pressure after the high-water period approaches in other regions.

    Sources report that high-energy-consuming factories will restart more capacity during 2Q and 3Q in Yunnan province, so State Grid will likely lift the electricity price; however, the impact on silicon factories with small hydroelectric power will be limited.

    CBI believes the views were very different in all regions, but the fluctuations for the price were limited. The weak export market failed to support the price to pick up, but the operating rates at factories were low, leaving no improvement to tight market supply, so the market will track weak trend. Attentions should be paid to national policy, production cost, operating rates and export markets.

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