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[Minor metal] Silicon Prices Still in Downward Track

[Ni] CBI Morning Review - 2009/5/27 Nickel Market

SHANGHAI, May 27 (CBI China) -- Transactions were very weak in domestic silicon metal market, and the market players were pessimistic toward the future price. The buyers postponed their purchase time and adopted a wait-and-see attitude.
&nbsp;&nbsp;&nbsp; According to CBI sources, current spot price for 553# silicon was about RMB 9,100/mt. The prices were very different in the way of forward payment since select factories have great capital pressure. High-grade silicon prices also experienced declines in different degree, and the traded price of 2202# silicon has fallen to RMB 10,000/mt.
&nbsp;&nbsp;&nbsp; The factories who planed to restart capacity in late May postponed their production plans due to sluggish market. Factories in Yunnan and Sichuan provinces faced great capital pressure as they have built up raw material stocks, so they sold goods at lower price to recollect the capital some time.
&nbsp;&nbsp;&nbsp; In general, exports from January to April fell by 70% YoY, delivering great pressure on domestic market.
&nbsp;&nbsp;&nbsp; CBI believes the market will remain unchanged in early June, and silicon metal prices will continue to move in the low level over next several weeks amid weak export markets; silicon prices will likely fall further if the operating rates increase in the near future. 
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