China Silicon metal prices remain stable

BEIJING (Scrap Monster): After the continuous drop for several months, Chinese silicon metal domestic prices turned stable gradually from late July and some smelters even began to raise offers. Chinese silicon metal suppliers raise the silicon metal export prices slightly this week.

Market participants predict that the export market may become active a bit in the near future after the summer vacation in overseas market, however, it is difficult for the market to see big improvements as the downstream industries are not strong under the unfavorable global economy.

The mainstream offers for 5-5-3, 4-4-1, 3-3-0-3, 3-3-0-3 (P≤50ppm) and 2-2-0-2 are in a range of USD1,980-2,000/t, USD2,090-2,110/t, USD2,250-2,270/t, USD2,320-2,340/t and USD2,480-2,500/t FOB China respectively this week.

A trader in South China, with a regular export volume of around 300tpm for silicon metal, told Asian Metal that domestic silicon metal offers for 4-4-1 and 3-3-0-3 increased from around RMB11,000/t (USD1,735/t) and RMB12,000/t (USD1,892/t) in ports respectively in around mid-July to around RMB11,300/t (USD1,782/t) and RMB12,200/t (USD1,924/t) in ports respectively in the recent several days, and their export offers also increased by around USD20-30/t to USD2,100/t and USD2,270/t FOB China respectively this week, with no deals being concluded yet.

The source claimed that domestic silicon metal prices turned stable gradually from late July. However, the future market is unclear now as the power prices in some areas decrease further and the operating rate for silicon metal plants may recover a bit, and they do not intend to add stocks in a hurry before receiving new orders.

A major silicon metal supplier in Chongqing reported that the mainstream prices for 5-5-3 dropped to around RMB10,200/t (USD1,608/t) in ports in mid-July and the offers increased gradually to around RMB10,400/t (USD1,640/t) in ports or higher in the recent days. In the export market, their offers for 5-5-3 also increase from USD1,980/t FOB China to around USD2,000/t FOB China this week, but no deals have been concluded at the level.

“Chinese silicon metal prices stopped falling on the low operating rate of plants, and the silicon metal export market became active a bit recently, but the overall market demand is not strong and it is difficult for the silicon metal prices to rebound obviously in a short term,” said the source.