Silicon Prices Stabilise after Rising amid Market Cautious Sentiment

SHANGHAI, Feb 17 (SMM) - Silicon metal prices stabilised after an uptick this week. As of February 17, the prices of standard #553 silicon metal in east China gained 100yuan/mt on a weekly basis to 17,000-17,200 yuan/mt, and those of above-standard #553 silicon metal climbed 200 yuan/mt to 17,400-17,600 yuan/mt. #421 silicon metal (for use in silicone) traded between 19,100-19,300 yuan/mt, an increase of 100 yuan/mt or 1%.

Major silicon metal plants in north China took the lead in raising their quotations at the beginning of the week, triggering wait-and-see sentiment among silicon metal powder and aluminium alloy producers. As new orders dwindled following centralised procurement, market prices gradually stabilised.

Polysilicon capacity in operation maintained an upward trend, ensuring strong demand for silicon metal. Polysilicon enterprises have basically completed their bids for February, while silicon metal powder producers also lost buying interest due to sufficient stocks on hand. Silicone enterprises maintained high operating rates. DMC prices rose to 17,400-18,000 yuan/mt. Assuming that all raw materials such as silicon metal and methyl chloride are sourced externally, the full cost of DMC would be around 16,300 yuan/mt andhe profit margins of DMC producers have improved greatly compared with a month ago. Aluminium alloy enterprises have basically resumed normal production. Despite improving orders from die-casting plants, rising silicon metal prices suppressed the procurement enthusiasm of aluminium alloy enterprises. 

Market inquiries have cooled down following centralised procurement. The persistent oversupply pressure in north China may leave the prices of lowgrade silicon metal vulnerable to decline next week.