Chinese silicon metal suppliers reluctant to sell
2023-03-28 08:21:53 [Print]
BEIJING (Asian Metal) 28 Mar 23 - As the current selling prices already below most suppliers' production cost, and most suppliers turned reluctant to sell now. The current mainstream prices of silicon metal 5-5-3 in China firmly stand at RMB15,800-16,300/t (USD2,296-2,369/t) delivered to main port, unchanged from late last week. Given the firm offers, insiders predict the mainstream prices of silicon metal 5-5-3 in China would keep firm this week.
A producer in Chongqing revealed that he rejected one bid for 100t at RMB15,500/t (USD2,253/t) delivered to Huangpu on Monday as he insisted on RMB15,800/t (USD2,296/t), in line with his price last Friday. "The current price already became RMB500/t (USD72/t) lower than my production cost, and I would rather keep stocks than selling with losing money," revealed the producer on Monday who last sold 100t at RMB16,500/t (USD2,398/t) early last week. He predicts the mainstream prices of silicon metal 5-5-3 in China would go steady this week upon the high production.
The producer, based on an annual production capacity of 17,800t of silicon metal, has two furnaces of 12,500kva in total with one of them running now and expects to produce about 600t in March, down by around 600t from last month, holding around 500t in stock.
A trader in Fujian revealed that over half of regular suppliers already halted production and others stopped quoting this week. "The lowest price from my suppliers keeps at RMB15,800/t (USD2,296/t) delivered to Huangpu, in line with the lower price I got last Friday, and I purchased 100t at RMB15,800/t (USD2,296/t) today," claimed the trader on Monday. He added that most suppliers hold prices firm as they already lost money, and he foresees the mainstream prices of silicon metal 5-5-3 in China would go firm this week.
The trader, based on a regular monthly trading volume of 300t of silicon metal, foresees to sell around 200t at most in March, down by 100t from last month, holding no stocks.
A producer in Chongqing revealed that he rejected one bid for 100t at RMB15,500/t (USD2,253/t) delivered to Huangpu on Monday as he insisted on RMB15,800/t (USD2,296/t), in line with his price last Friday. "The current price already became RMB500/t (USD72/t) lower than my production cost, and I would rather keep stocks than selling with losing money," revealed the producer on Monday who last sold 100t at RMB16,500/t (USD2,398/t) early last week. He predicts the mainstream prices of silicon metal 5-5-3 in China would go steady this week upon the high production.
The producer, based on an annual production capacity of 17,800t of silicon metal, has two furnaces of 12,500kva in total with one of them running now and expects to produce about 600t in March, down by around 600t from last month, holding around 500t in stock.
A trader in Fujian revealed that over half of regular suppliers already halted production and others stopped quoting this week. "The lowest price from my suppliers keeps at RMB15,800/t (USD2,296/t) delivered to Huangpu, in line with the lower price I got last Friday, and I purchased 100t at RMB15,800/t (USD2,296/t) today," claimed the trader on Monday. He added that most suppliers hold prices firm as they already lost money, and he foresees the mainstream prices of silicon metal 5-5-3 in China would go firm this week.
The trader, based on a regular monthly trading volume of 300t of silicon metal, foresees to sell around 200t at most in March, down by 100t from last month, holding no stocks.
