Chinese low-grade silicon metal prices keeps moving up
2016-03-15 08:46:43 [Print]
BEIJING (Asian Metal) 15 Mar 15 - Chinese low-grade silicon metal prices continued the up-moving trend further into this week. The prevailing prices of 5-5-3, 5-5-3 oxygen-blown and 4-4-1 increased from RMB10,100-10,300/t (USD1,554-1,585/t), RMB10,350-10,550/t (USD1,592-1,623/t) and RMB10,650-10,850/t (USD1,638-1,669/t) delivered to ports respectively in the end of last week to RMB10,200-10,400/t (USD1,569-1,600/t), RMB10,450-10,650/t (USD1,608-1,638/t) and RMB10,700-10,900/t (USD1,646-1,677/t) delivered to ports respectively at the beginning of this week. The supply remained tight on the spot market and some suppliers insisted on higher quotations.
A major silicon metal producer in North China reported that they sold 5-5-3 oxygen-blown and 5-5-1 at 10,500/t (USD1,615/t) and RMB10,600/t (USD1,631/t) delivered to Tianjin late last week and raised quotations to RMB10,600/t (USD1,631/t) and RMB10,700/t (USD1,646/t) delivered to Tianjin on Monday, with a few deals in small quantities like one to two truckloads already being concluded. The producer claimed that the demand for the materials was strong and the prices have increased by around RMB600/t since mid-February till now. The smelter also produces chemical grade silicon metal 4-2-1 and 4-1-1, and the prices are around RMB11,200/t (USD1,723/t) and RMB11,300/t (USD1,738/t) delivered respectively, up by RMB200/t (USD31/t) against those in late February.
The producer noted that they mainly work on orders of chemical silicon metal from regular customers. They are inclined to sell 5-5-3 oxygen-blown and 5-5-1 on the spot market now and do not accept long-term orders as the prices are moving up fast. They hold no inventory of low-grade silicon metal and only a few stocks of chemical silicon metal in hand currently.
A trader in South China claimed that they purchased two truckloads of 5-5-3 at RMB10,100/t (USD1,554/t) ex works from Sichuan last week and the offer increased to RMB10,200/t (USD1,569/t) ex works on Monday. Even though, suppliers claimed that they did not have many materials to supply and could only sell one to two truckloads. They purchased some 5-5-3 oxygen-blown and 4-4-1 from Xinjiang at RMB10,650/t (USD1,638/t) and RMB10,850/t (USD1,669/t) delivered to Huangpu last week and the quotations increased slightly further to RMB10,700/t (USD1,646/t) and RMB10,900/t (USD1,677/t) delivered to Huangpu respectively on Monday. Moreover, a major supplier claimed that they could not accept orders for prompt shipment for 5-5-3 oxygen-blown now. The source claimed that the prices of low-grade silicon metal have increased by around RMB700-800/t (USD108-123/t) in the recent one month, and those for high-grade silicon metal rose slightly. They still have some stocks of 3-3-0-3 and 2-2-0-2 purchased at RMB11,100/t (USD1,708/t) and RMB12,250/t (USD1,885/t) delivered to Kunming from Yunnan in early February and the quotations increased a bit to RMB11,400/t (USD1,754/t) and RMB12,500/t (USD1,923/t) delivered to Kunming now.
With a regular trading volume of around 1,200tpm, the trader stocked around 1,000t of silicon metal before the Spring Festival holiday (7 to 13 February) and added stocks gradually after the holiday as the market showed obvious signal of moving up. They now hold a stock of 1,300t in hand now. “I think silicon metal prices will remain firm or increase slightly further in the following couple of weeks as the operating rate in South China will not see obvious increase until the second half of April. We held the previous stocks in hand and kept purchasing from the spot market for sales recently,” said the trader.
A major silicon metal producer in North China reported that they sold 5-5-3 oxygen-blown and 5-5-1 at 10,500/t (USD1,615/t) and RMB10,600/t (USD1,631/t) delivered to Tianjin late last week and raised quotations to RMB10,600/t (USD1,631/t) and RMB10,700/t (USD1,646/t) delivered to Tianjin on Monday, with a few deals in small quantities like one to two truckloads already being concluded. The producer claimed that the demand for the materials was strong and the prices have increased by around RMB600/t since mid-February till now. The smelter also produces chemical grade silicon metal 4-2-1 and 4-1-1, and the prices are around RMB11,200/t (USD1,723/t) and RMB11,300/t (USD1,738/t) delivered respectively, up by RMB200/t (USD31/t) against those in late February.
The producer noted that they mainly work on orders of chemical silicon metal from regular customers. They are inclined to sell 5-5-3 oxygen-blown and 5-5-1 on the spot market now and do not accept long-term orders as the prices are moving up fast. They hold no inventory of low-grade silicon metal and only a few stocks of chemical silicon metal in hand currently.
A trader in South China claimed that they purchased two truckloads of 5-5-3 at RMB10,100/t (USD1,554/t) ex works from Sichuan last week and the offer increased to RMB10,200/t (USD1,569/t) ex works on Monday. Even though, suppliers claimed that they did not have many materials to supply and could only sell one to two truckloads. They purchased some 5-5-3 oxygen-blown and 4-4-1 from Xinjiang at RMB10,650/t (USD1,638/t) and RMB10,850/t (USD1,669/t) delivered to Huangpu last week and the quotations increased slightly further to RMB10,700/t (USD1,646/t) and RMB10,900/t (USD1,677/t) delivered to Huangpu respectively on Monday. Moreover, a major supplier claimed that they could not accept orders for prompt shipment for 5-5-3 oxygen-blown now. The source claimed that the prices of low-grade silicon metal have increased by around RMB700-800/t (USD108-123/t) in the recent one month, and those for high-grade silicon metal rose slightly. They still have some stocks of 3-3-0-3 and 2-2-0-2 purchased at RMB11,100/t (USD1,708/t) and RMB12,250/t (USD1,885/t) delivered to Kunming from Yunnan in early February and the quotations increased a bit to RMB11,400/t (USD1,754/t) and RMB12,500/t (USD1,923/t) delivered to Kunming now.
With a regular trading volume of around 1,200tpm, the trader stocked around 1,000t of silicon metal before the Spring Festival holiday (7 to 13 February) and added stocks gradually after the holiday as the market showed obvious signal of moving up. They now hold a stock of 1,300t in hand now. “I think silicon metal prices will remain firm or increase slightly further in the following couple of weeks as the operating rate in South China will not see obvious increase until the second half of April. We held the previous stocks in hand and kept purchasing from the spot market for sales recently,” said the trader.
Silicon Metal 4-4-1 Delivered Europe
Unit:EUR/mt
China silicon metal producers' sales volume statistics by province by month
Unit: mt
