Chinese low-grade silicon metal export prices rise further
2016-03-16 08:37:10 [Print]
BEIJING (Asian Metal) 16 Mar 16 - Due to the further price rise and tightening supply in local market, Chinese low-grade silicon metal export prices moved up slightly early this week with 5-5-3 and 4-4-1 to USD1,580-1,610/t and USD1,660-1,690/t FOB China respectively, up by USD20/t and USD10/t respectively from late last week. The prices for high-grade silicon metal 3-3-0-3, 3-3-0-3 (P≤50ppm) and 2-2-0-2 stayed largely stable 1,760-1,790/t, USD1,800-1,830/t and USD1,980-2,010/t FOB China respectively early this week.
A trader in South China reported that they purchased silicon metal 5-5-3 and 4-4-1 at RMB10,300/t (USD1,585/t) and RMB10,800/t (USD1,662/t) delivered to ports respectively last week and finalized a few deals in small quantities like two to three containers at USD1,600/t and USD1,670/t FOB China respectively. The mainstream quotations of 5-5-3 and 4-4-1 increased further to RMB10,500/t (USD1,615/t) and RMB10,900/t (USD1,677/t) delivered to ports early this week and even though, it was hard to purchase materials in large quantities and smelters claimed that they have few inventory in hand. They raised the export quotations to USD1,630/t and USD1,690/t FOB China respectively, while no deals were concluded yet and buyers’ target prices increased slowly. The price for 3-3-0-3 moved up slightly to RMB11,500/t (USD1,769/t) delivered to ports and sold a batch of the material at USD1,750/t FOB China. The price in local market remained unchanged early this week and they held export offer stable, with no deals concluded yet. As for 2-2-0-2, the trader said that the price stayed at RMB12,750/t (USD1,962/t) delivered to ports in the recent two weeks and the held the export offer at USD2,010/t FOB China. They only received a few inquiries for 2-2-0-2 occasionally, but no transactions were finalized.
With a regular export volume of around 1,000tpm, the trader claimed that most of the materials are prepared for long-term orders and only have a stock of around 300t to supply to the spot market. However, the trader thinks that Chinese silicon metal market is likely to calm down gradually into April when the operating rate in South China increases, and they do not intend to build large stocks under the current price level.
A second trader in South China told Asian Metal that they purchased 5-5-3 and 4-4-1 without oxygen-blown at RMB10,100/t (USD1,554/t) and RMB10,600/t (USD1,631/t) delivered to ports respectively early last week and received a few small orders within 100t at USD1,560/t and USD1,650/t FOB China respectively at the time. Local 5-5-3 and 4-4-1 without oxygen-blown prices has gone up further to RMB10,300/t (USD1,585/t) and RMB10,700/t (USD1,646/t) delivered to ports in the recent several days. They quoted the materials at USD1,600/t and USD1,670/t FOB China respectively, but no deals were finalized.
With a regular export volume of around 600tpm, the trader claimed that they are mainly fulfilling quarterly orders with regular customers and hold few stocks in hand. They received more inquiries from the export market after the Chinese Spring Festival holiday (7 to 13 February), but only reached a few small deals as their quotations were uncompetitive and the export market still saw some lower prices under the fierce competition. “Some smelters in Fujian resumed production after the holiday. I heard that some smelters in Guizhou and Nujiang, Yunnan will resume production in late March and early April. I think silicon metal prices will not increase so fast into April. So we are inclined to purchase on orders now,” said the trader.
A trader in South China reported that they purchased silicon metal 5-5-3 and 4-4-1 at RMB10,300/t (USD1,585/t) and RMB10,800/t (USD1,662/t) delivered to ports respectively last week and finalized a few deals in small quantities like two to three containers at USD1,600/t and USD1,670/t FOB China respectively. The mainstream quotations of 5-5-3 and 4-4-1 increased further to RMB10,500/t (USD1,615/t) and RMB10,900/t (USD1,677/t) delivered to ports early this week and even though, it was hard to purchase materials in large quantities and smelters claimed that they have few inventory in hand. They raised the export quotations to USD1,630/t and USD1,690/t FOB China respectively, while no deals were concluded yet and buyers’ target prices increased slowly. The price for 3-3-0-3 moved up slightly to RMB11,500/t (USD1,769/t) delivered to ports and sold a batch of the material at USD1,750/t FOB China. The price in local market remained unchanged early this week and they held export offer stable, with no deals concluded yet. As for 2-2-0-2, the trader said that the price stayed at RMB12,750/t (USD1,962/t) delivered to ports in the recent two weeks and the held the export offer at USD2,010/t FOB China. They only received a few inquiries for 2-2-0-2 occasionally, but no transactions were finalized.
With a regular export volume of around 1,000tpm, the trader claimed that most of the materials are prepared for long-term orders and only have a stock of around 300t to supply to the spot market. However, the trader thinks that Chinese silicon metal market is likely to calm down gradually into April when the operating rate in South China increases, and they do not intend to build large stocks under the current price level.
A second trader in South China told Asian Metal that they purchased 5-5-3 and 4-4-1 without oxygen-blown at RMB10,100/t (USD1,554/t) and RMB10,600/t (USD1,631/t) delivered to ports respectively early last week and received a few small orders within 100t at USD1,560/t and USD1,650/t FOB China respectively at the time. Local 5-5-3 and 4-4-1 without oxygen-blown prices has gone up further to RMB10,300/t (USD1,585/t) and RMB10,700/t (USD1,646/t) delivered to ports in the recent several days. They quoted the materials at USD1,600/t and USD1,670/t FOB China respectively, but no deals were finalized.
With a regular export volume of around 600tpm, the trader claimed that they are mainly fulfilling quarterly orders with regular customers and hold few stocks in hand. They received more inquiries from the export market after the Chinese Spring Festival holiday (7 to 13 February), but only reached a few small deals as their quotations were uncompetitive and the export market still saw some lower prices under the fierce competition. “Some smelters in Fujian resumed production after the holiday. I heard that some smelters in Guizhou and Nujiang, Yunnan will resume production in late March and early April. I think silicon metal prices will not increase so fast into April. So we are inclined to purchase on orders now,” 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
