Chinese silicon metal suppliers mark prices down to destock
2023-03-17 07:49:50 [Print]
BEIJING (Asian Metal) 17 Mar 23 - Upon the bearish attitudes towards the outlook, Chinese silicon metal suppliers cut prices to destock this week, and the current mainstream prices of silicon metal 5-5-3 in China dropped by RMB300/t (USD43/t) to RMB16,000-16,500/t (USD2,319-2,391/t) delivered from early this week. Given the high production cost but heavy stocks in the market, insiders predict the mainstream prices of silicon metal 5-5-3 in China would keep softly stable next week.
A producer in Chongqing disclosed that he didn't close any deals this week as the demand from silicon powder plants and overseas orders turned weakening, while he usually could sell at least one truckload around 30t every day in February. "I could accept RMB16,300/t (USD2,362/t) delivered to Huangpu currently, while I insisted on RMB16,500/t (USD2,391/t) on Monday, and I last sold 30t at RMB16,500/t (USD2,391/t) early last week," revealed the producer on Thursday. He added that his current inventory doubled against late last month, and he already lost about RMB300/t (USD43/t) at least upon the current selling prices, but he still has no confidenence about the outlook and predicts the mainstream prices would keep softly stable next week upon the high production cost but heavy stocks.
The producer, based on an annual production capacity of 17,500t of silicon metal, expects to produce about 1,200t in March, unchanged from last month, holding around 2,000t in stock, and they prepare to stop production at the end of this month. The producer outputted about 12,000t in total last year and around 2,400t by far in 2023.
A trader in Fujian disclosed that the current offer of silicon metal 5-5-3 touched RMB16,000/t (USD2,319/t) delivered to Kunming from a regular supplier in Yunnan with no discount from a supplier who insisted on RMB16,200/t (USD2,348/t) on Monday, but he still has no plan to purchase upon the sluggish overseas demand. "I usually could purchase twice every week but didn't purchase since early last week as I couldn't win overseas' orders based on the back-to-back prices, and I last purchased 60t at RMB16,700/t (USD2,420/t) delivered to Huangpu two weeks ago," revealed the trader on Thursday. He added that most producers already claimed that they're losing money now, while some traders holding stocks tried to lower prices further to destocks as the wet season would come at the end of April, which would drive the production cost lower at that time. He still predicts the mainstream prices of silicon metal 5-5-3 in China would go soft next week upon the 20,000t of stocks in the market and weak demand in the market.
The trader, with a regular monthly trading volume of 500t of silicon metal, expects to sell around 200t at most in March, down by 200t from last month, keeping no stocks.
A producer in Chongqing disclosed that he didn't close any deals this week as the demand from silicon powder plants and overseas orders turned weakening, while he usually could sell at least one truckload around 30t every day in February. "I could accept RMB16,300/t (USD2,362/t) delivered to Huangpu currently, while I insisted on RMB16,500/t (USD2,391/t) on Monday, and I last sold 30t at RMB16,500/t (USD2,391/t) early last week," revealed the producer on Thursday. He added that his current inventory doubled against late last month, and he already lost about RMB300/t (USD43/t) at least upon the current selling prices, but he still has no confidenence about the outlook and predicts the mainstream prices would keep softly stable next week upon the high production cost but heavy stocks.
The producer, based on an annual production capacity of 17,500t of silicon metal, expects to produce about 1,200t in March, unchanged from last month, holding around 2,000t in stock, and they prepare to stop production at the end of this month. The producer outputted about 12,000t in total last year and around 2,400t by far in 2023.
A trader in Fujian disclosed that the current offer of silicon metal 5-5-3 touched RMB16,000/t (USD2,319/t) delivered to Kunming from a regular supplier in Yunnan with no discount from a supplier who insisted on RMB16,200/t (USD2,348/t) on Monday, but he still has no plan to purchase upon the sluggish overseas demand. "I usually could purchase twice every week but didn't purchase since early last week as I couldn't win overseas' orders based on the back-to-back prices, and I last purchased 60t at RMB16,700/t (USD2,420/t) delivered to Huangpu two weeks ago," revealed the trader on Thursday. He added that most producers already claimed that they're losing money now, while some traders holding stocks tried to lower prices further to destocks as the wet season would come at the end of April, which would drive the production cost lower at that time. He still predicts the mainstream prices of silicon metal 5-5-3 in China would go soft next week upon the 20,000t of stocks in the market and weak demand in the market.
The trader, with a regular monthly trading volume of 500t of silicon metal, expects to sell around 200t at most in March, down by 200t from last month, keeping no stocks.
