Major trader claimed high prices for silicon
2005-05-17 08:53:13 【Print】
BEIJING (Asian Metal) 17 May 05 – Due to the abolishment of the silicon metal rebate and recent power price increases, market participants are striving to find feasible price levels, which can be accepted by both buyer and seller, while a major silicon metal trader in North China reported a high price for an export deal.
“We concluded a silicon metal 5-5-3 deal for USD1,030/t FOB CMP last week,” a Beijing-based trader told Asian Metal. "We usually purchase materials in Guizhou, where power prices have increased by around RMB0.03/kwh, so smelters there quote higher than before.”
Compared to RMB7,800/t in ports (USD880/t FOB CMP) before the May holiday, silicon metal prices have increased both domestically and overseas.
According to the trader, the company has no long-term contracts, and will not be greatly affected by the rebate cancellation.
“USD1,030/t FOB CMP for silicon metal 5-5-3 is impossible for us,” a Tianjin-based trader said. “We quoted USD1,070/t CIF Turkey for 5-5-3, with a quantity of 96t, but the foreign buyer is unwilling to accept as he believes the quotation is too high.”
According to the source, ocean freight to Turkey is USD80/t. “Materials we purchased were at least RMB8,020/t in ports, so USD1,070/t CIF Turkey is the bottom line,” said the source, adding that the bank charge is around USD10/t.
Concerning silicon metal 4-4-1, smelters quote RMB8,435-8,500/t in ports now, according to the source.
