[Minor metal] CBI Forecast - Domestic Silicon Market

SHANGHAI, July 10 (CBI China) -- Offers for silicon metal climbed in domestic market during this week, but transactions reported no improvement.

    Several reasons were behind the price rise:

    1. As silicon prices remained low, a portion of factories had to cut or suspend production due to huge capital pressure, leading to slight declines in market supply.

    2. Select factories were reluctant to move cargos upon their optimism on market outlook.

    3. Export volumes increased steadily, and market confidence has improved as well, generating hopes on overseas demand.

    4. It is reasonable for silicon prices to pick up after moves below cost prices for a long time.

    There will be thin possibility silicon prices will grow further next week. Based on current trading volumes, the downstream demand is not enough to support prices to grow further, so market prices will likely stabilize. Port prices will be RMB 8,700-8,800/mt for 553# silicon metal next week. Prices will likely climb further, if traders implement stock replenishment.

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