[Minor metal] Silicon Factories' Unwillingness to Move Cargos Drives up Offers

SHANGHAI, July 10 (CBI China) -- Domestic silicon metal factories showed strong unwillingness to move cargos, and a portion of factories announced they had plenty of orders and had no inventories.

    According to Shanghai sources, spot inventories were about 5kt in Shanghai, including the high-priced inventories piled up last year. Recently, limited resources were still shipped to Shanghai, but with no transactions till now.

    Traders said factories lifted silicon prices intentionally since the start of this week, up RMB 200/mt for port prices. Price offers have reached RMB 8,700-8,800/mt for 553# silicon, but some traders moved goods at RMB 8,600/mt at port.

    CBI believes factories raised offers for two reasons. First, a portion of factories halted production due lower market prices than costs, leading to output declines; second, factories’ confidence in market outlook recovered, and market prices will bottom out after the export market improves.

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