[Minor metal] SMM Forecast - Domestic Silicon Market

SHANGHAI, Sept. 18 (SMM) -- This week, silicon metal market reported no improvement, and overseas demand remained weak, and domestic downstream consumption was stable. #553 silicon metal was mainly traded at RMB 9,500/mt, and #2202 silicon metal was mainly traded at RMB 10,500/mt.

    Production costs climbed gradually with the onset of low water period, so the producers will not reduce ex-works prices even if the demand is sluggish. In addition, a number of producers cut or suspended production due to higher costs, which will help reduce the market supply, so producers were still optimistic about market outlook.

    Traders remained cautious before the demand reports real improvement.

    SMM predicts silicon metal prices will remain unchanged, with traded prices for #553 and #2202 silicon metal in the RMB 9,500-10,500/mt range. Special attention will be paid to the changes in market supply and demand during National Day holiday, as producers will maintain production, while trading volumes will decline. Silicon metal prices will likely fall in the short term, if market supply increases significantly.

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