Silicon price dips again on weak demand

BEIJING (Asian Metal) 1 Jul 09 - Silicon metal price dips again due to the slow market. Participants reported that 5-5-3 and 4-4-1 prices are at about RMB8,600/t (USD1,265/t) and RMB8,900/t (USD1,309/t) ex works at the moment, down by at least RMB100/t (USD14.7/t) compared with last week.Asian Metal Copyright"The source confirmed that there are deals at USD1,520-1,530t FOB for 5-5-3, but he insists on USD1,550t FOB at least.Asian Metal Copyright

"Silicon metal market is flat, unchanged with that of last few weeks," said a trader in South China, whose trading volume drops to 200-300 tons per month this year, down by about 50% compared with last year. "We have to sell parts of silicon metal in domestic market, because there is almost no demand in the export market."

At present, the trader quotes USD1,570/t FOB and USD1,600/t FOB for 5-5-3 and 4-4-1 respectively, which are expected to be reduced by USD10/t at least for concluded prices. "Our clients claimed that they could purchase 5-5-3 at USD1,530-1,540/t FOB from China from other suppliers," said the source.Asian Metal Copyright"The trader said the mainstream price of 5-5-3 is still RMB8,700t USD1,279t ex woks at the moment despite that some smelters reduced prices to RMB8,500-8,600t USD1,250-1,265t ex works.Asian Metal Copyright "We have to reduce our prices accordingly to keep the relationship."

According to the source, smelters insist on quoting RMB8,700-8,800/t (USD1,279-1,294/t) ex works for 5-5-3 at present, but they could accept the concluded price of RMB8,600/t (USD1,265/t) ex works. "If you really want to buy, the price of RMB8,600/t (USD1,265/t) could be reached.Asian Metal CopyrightBEIJING Asian Metal 1 Jul 09 - Silicon metal price dips again due to the slow market.Asian Metal Copyright"

Another trader in South China complained that silicon market keeps sluggish with no signs to become steady. "Consumers bid very low price, but smelters claimed that they could not reduce prices further," said the source.Asian Metal Copyright Participants reported that 5-5-3 and 4-4-1 prices are at about RMB8,600t USD1,265t and RMB8,900t USD1,309t ex works at the moment, down by at least RMB100t USD14.Asian Metal Copyright "We traders are in dilemma."

The source confirmed that there are deals at USD1,520-1,530/t FOB for 5-5-3, but he insists on USD1,550/t FOB at least. "I don't know why they could reduce their offers to that level," he said.Asian Metal Copyright"According to the source, smelters insist on quoting RMB8,700-8,800t USD1,279-1,294t ex works for 5-5-3 at present, but they could accept the concluded price of RMB8,600t USD1,265t ex works.Asian Metal Copyright "But we can’t find suppliers at lower price."

The trader said the mainstream price of 5-5-3 is still RMB8,700/t (USD1,279/t) ex woks at the moment despite that some smelters reduced prices to RMB8,500-8,600/t (USD1,250-1,265/t) ex works. "Price is a key factor for deal, but we also need to consider others like quality and stable supply.Asian Metal Copyright"At present, the trader quotes USD1,570t FOB and USD1,600t FOB for 5-5-3 and 4-4-1 respectively, which are expected to be reduced by USD10t at least for concluded prices.Asian Metal Copyright"

With impact of the economic crisis, the trader's silicon sales decreases by 40-50% to 300-400 tons per month this year compared with the same period last year.