SMM Weekly China Silicon Metal Market Review

As of December 7, prices of standard 553# silicon, above-standard 553# silicon, 441# silicon, 421# silicon and 3303# silicon in East China were stable at 14,200-14,400 yuan/mt, 14,600-14,800 yuan/mt, 15,000-15,200 yuan/mt, 15,700-15,900 yuan/mt and 15,600-15,800 yuan/mt respectively. Offers from silicon plants were stable during the week. Some bullish silicon plants increased offers on December 4. On December 5, silicon futures prices plummeted, with 2311 contract once falling below 13,000 yuan/mt. 421# silicon spot transactions were extremely active. Offers for Guangdong’s 421# silicon were at premiums of 1,250-1,450 yuan/mt over the most-traded futures contract at the beginning of the week, and the premiums widened to 1,400-1,600 yuan/mt in the second half of the week amid more futures and spot transactions. After premiums widened, 421# silicon spot market activity appeared subdued. At the same time, falling futures price erosions made downstream buyers prudent, and buyers aimed to meet rigid demand, while silicon plants kept offers firm amid strong cost support.