Silicon Metal Prices To Face Downside Risk After Labour Day Holiday

SHANGHAI, Apr 28 (SMM) - Sichuan has officially entered the normal water period. According to SMM survey, fewer than five silicon metal furnaces in the province have been brought back into operation. Operating rates in the province remained low. Most silicon metal producers in Sichuan plan to resume production at the end of May.

Above-standard, low-grade silicon metal manufacturers occupied a large market share and were unable to sell at lower prices on the back of their cost advantage, while other enterprises generally asked for high prices. Traders barely made profits as end users tried to push for lower prices. Silicon metal supply was abundant in the spot market. Stalemate between upstream and downstream enterprises resulted in muted trades.

Downstream buyers and traders remain bearish towards future silicon metal prices. It is expected silicon metal prices will hold steady or inch lower after the Labour Day holiday.