[Minor metal] SMM Review and Forecast - Domestic Selenium Market

SHANGHAI, Oct. 16 (SMM) -- The panic sentiment appeared in domestic selenium market. Domestic selenium prices continued to drop negatively affected by falling prices for selenium dioxide. Although costs for imported selenium powder are about RMB 500/kg, selenium powder prices declined constantly due to oversupply in selenium market and low purchasing interest of downstream consumers. At present, mainstream traded prices have fallen to RMB 470-500/kg from RMB 530-560/kg.

    On the one hand, the constant drops in refined manganese prices dampened raw material prices; on the other hand, operating rates at refined manganese producers declined, reducing the demand for selenium dioxide increasingly. In addition, a number of domestic selenium dioxide suppliers sold goods at lower prices, further dragging down selenium dioxide prices rapidly during this week, with mainstream traded prices down to RMB 320/kg from pre-holiday level of RMB 350/kg.

    SMM believes the selenium fundamentals were weak. Although current selling prices have been lower than cost prices, selenium prices will likely fall further. Meanwhile, the sell-off activities at a portion of suppliers dampened selenium prices as well.

    Next week, selenium powder prices will move in the RMB 450-500/kg range, and prices for selenium dioxide will fall to RMB 300/kg.

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