[Minor metal] Silicon Prices Remain Stable Despite of Rising Freight Charges

SHANGHAI, June 30 (CBI China) -- Recently, silicon metal prices remained stable and the rising freight charges hampered the shipments at some factories.

    Currently the inventories were large at port, and traders had to sell a portion of goods in domestic market due to sluggish export market conditions, and the spot price for #553 silicon was about RMB 8,600/mt.

    A factory in Guizhou province said that “current prices have been lower than costs, and the sales pressure was large. Meanwhile, the increased freight charges added more pressure to the factories given the rising crude oil prices.”

    A factory in Yunan province said the downward room for silicon prices was very limited, with RMB 200/mt at most. Currently, most of factories have been in the red. In this context, factories will unlikely restart operation without support from power plants.

    CBI believes silicon prices will still face downward pressure during high-water period, as the supply surplus still existed in the market due to bearish export market and relatively higher operating rates at factories. A portion of factories will be forced to suspend production along with falling silicon prices, and the market is expected to improve after the demand recovers during August and September.

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