[Minor metal] SMM Forecast - Domestic Silicon Market

SHANGHAI, Sept. 25 (SMM) -- Silicon market remained neutral during this week, with no significant changes in supply and demand. Traded prices were RMB 9,500/mt for #553 silicon, and RMB 10,500/mt for #2202 silicon.

    According to SMM survey of silicon prices after National Day holiday, 40% of market insiders predict silicon prices will rise, while 30% of them believe silicon prices will fall. 20% of market insiders said silicon prices will remain unchanged, while the remaining 10% of them were uncertain about post-holiday silicon prices. the surveyed enterprises are composed of factories (20%), traders (55%), and downstream manufacturers (20%).

    Market players with optimistic views believe local factories will cut or suspend productions due to higher electricity prices, and they will not move goods at lower prices; in addition, downstream manufacturers will replenish stocks after National Day holiday, helping push up silicon prices; the demand from overseas market will improve as well.

    However, the market insiders with pessimistic views believe finished goods inventories at factories will increase during holiday, resulting in growing supply in the market after the holiday; export market will remain sluggish in the short term; factories will reduce silicon prices slightly in order to guarantee sufficient cash flow.

    SMM predicts market prices will report no marked changes next week, and traded prices for #553-2202 were about RMB 9,500-10,600/mt. Silicon prices will likely fall slightly during the first week after the National Day holiday given ample market supply.

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