[Minor metal] SMM Forecast - Domestic Silicon Market

SHANGHAI, July 31 (SMM) -- During this week, factories continued to adhere to their higher offer, but actual transactions reported no significant improvement, and traders reduced purchases after stock replenishment as well.

    Last week, SMM predicted high offers for silicon would still exist in the market, and actual transactions will tend to reasonable. At present, domestic demand remained strong, likely driving up silicon prices further. However, exporters have had inventories in hand, leaving little possibility of purchases.

    Next week, market prices for silicon metal will likely climb slightly. Factories were firm with their offers given their limited inventories, so there will be thin possibility silicon prices will fall in the short term, even if transactions are weak. Export market is recovering, so traders will take this opportunity to purchase some cargo, which will help support silicon prices to some extent. Production cuts and suspensions at factories in Hunan province led to tight spot supply, which will help drive up silicon prices. Meanwhile, the overall economic environment failed to recover fully, and the downstream demand has improved slightly, and traders still held some inventories, and all these factors will limit upward room for silicon prices.

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