Silicon Metal Prices Stopped Falling Last Week as Silicon Plants Held Firm the Prices

SHANGHAI, Jul 11 (SMM) – Silicon metal prices were stable as a whole last week. The prices of 553# silicon without oxygen stood at 16,100-16,300 yuan/mt in east China as of last Friday, flat from a week ago; prices of 553# silicon with oxygen were 17,000-17,300 yuan/mt, up 150 yuan/mt or 1% on the week. The prices of 441# silicon were 17,700-17,900 yuan/mt, flat WoW, and the prices of 3303# silicon stood between 18,400-18,500 yuan/mt, also flat. 421# silicon (for silicone) was sold at 18,500-19,000 yuan/mt in east China.

Silicon metal prices stopped falling and showed signs of stabilising last week. On the one hand, the large plants raised their quotations, which boosted the confidence of small plants. Coupled with firmer cost support, the low-priced sources quickly disappeared in the market. Meanwhile, market transactions picked up when silicon metal prices stabilised, as it is the high time for downstream restocking at the beginning of the month.

On the fundamentals, the operating rates of industrial silicon were high in the rainy season, leading to more supplies. The downstream sectors like aluminium alloy and silicone, on the other hand, was unable to accommodate higher-priced silicon metal due to poor profits. Hence silicon metal prices stabilised with pressure from both the upstream and downstream, only some metallurgy-grade low-grade silicon prices rose slightly due to tight supply.

On the demand side, the operating rates of aluminium alloy were stable recently. SMM prices of aluminium alloy ADC 12 stood between 18,500-18,700 yuan/mt, down 600 yuan/mt on a weekly basis due to falling aluminium prices and poor orders. The operating rates of silicone fell, and DMC prices were mostly 20,500-21,000 yuan/mt, up 1,350 yuan/mt from a week ago. Operating rates of polysilicon changed little, and most manufacturers are under maintenance in July. The prices of recharging polysilicon recorded the sixth consecutive rising session due to supply shortage with the highest traded price at 300 yuan/kg.

Market players now differ on future price moves of silicon metal. Based on the sentiment and financial situation of silicon plants as well as downstream demand, silicon metal prices are likely to remain stable this week, without a solid foundation for an increase or decline.