Chinese silicon metal market bearish attitudes mounting
2023-04-21 08:24:36 [Print]
BEIJING (Asian Metal) 21 Apr 23 - As the electricity cost in Sichuan would decrease in May, the Chinese silicon metal market sees mounting negative sentiment this week, and the current mainstream prices of silicon metal 5-5-3 in China edged down by RMB200/t (USD29/t) to RMB15,000-15,500/t (USD2,810-2,252/t) delivered to main port from early this week. Given the remaining low sluggish demand, insiders predict the mainstream prices of silicon metal 5-5-3 in China still have room to move down next week.
A producer in Sichuan revealed that he could accept RMB14,800/t (USD2,136/t) EXW D/P with no more discount which means around RMB15,000/t (USD2,180/t) delivered to Huangpu, while he insisted on RMB15,200/t (USD2,209/t) delivered to Huangpu on Monday. "I got informal notice today from electricity bureau that the electricity would drop from RMB0.58/KWH (USD0.08/KWH) in April to RMB0.43/ (USD0.06/KWH) in May, and I moved prices down to boost sales," revealed the producer on Thursday. He added that he last sold 100t at RMB15,200/t (USD2,209/t) delivered to Huangpu early last week, and the purchase remains slow upon most buyer's bearish attitudes toward the outlook. He foresees the mainstream prices of silicon metal 5-5-3 in China would move down further next week.
The producer, with an annual production capacity of 17,280t of silicon metal, expects to produce around 1,000t in April with two of its two furnaces of 12,500kVA in operation, up by about 300t from last month as they just resumed one furnace in the middle of this month, holding around 1,000t in stock.
A trader in Fujian revealed that one regular supplier in Chongqing insisted on RMB15,300/t (USD2,223/t) delivered to Huangpu on Monday currently could accept RMB15,100/t (USD2,194/t) now, but he still hangs up purchases. "Some sources in the market indicate the electricity cost in Sichuan would decrease by at least RMB0.1/KWH (USD0.01KWH) in May against April," revealed the trader on Thursday who last purchased 100t at RMB15,300/t (USD2,223/t) late last week. Given the sluggish demand and lowering production cost, insiders predict the mainstream prices of silicon metal 5-5-3 in China would drop further next week.
Based on a regular monthly trading volume of 500t of silicon metal, the trader expects to sell around 300t in April, down by around 200t from last month, holding no stocks.
A producer in Sichuan revealed that he could accept RMB14,800/t (USD2,136/t) EXW D/P with no more discount which means around RMB15,000/t (USD2,180/t) delivered to Huangpu, while he insisted on RMB15,200/t (USD2,209/t) delivered to Huangpu on Monday. "I got informal notice today from electricity bureau that the electricity would drop from RMB0.58/KWH (USD0.08/KWH) in April to RMB0.43/ (USD0.06/KWH) in May, and I moved prices down to boost sales," revealed the producer on Thursday. He added that he last sold 100t at RMB15,200/t (USD2,209/t) delivered to Huangpu early last week, and the purchase remains slow upon most buyer's bearish attitudes toward the outlook. He foresees the mainstream prices of silicon metal 5-5-3 in China would move down further next week.
The producer, with an annual production capacity of 17,280t of silicon metal, expects to produce around 1,000t in April with two of its two furnaces of 12,500kVA in operation, up by about 300t from last month as they just resumed one furnace in the middle of this month, holding around 1,000t in stock.
A trader in Fujian revealed that one regular supplier in Chongqing insisted on RMB15,300/t (USD2,223/t) delivered to Huangpu on Monday currently could accept RMB15,100/t (USD2,194/t) now, but he still hangs up purchases. "Some sources in the market indicate the electricity cost in Sichuan would decrease by at least RMB0.1/KWH (USD0.01KWH) in May against April," revealed the trader on Thursday who last purchased 100t at RMB15,300/t (USD2,223/t) late last week. Given the sluggish demand and lowering production cost, insiders predict the mainstream prices of silicon metal 5-5-3 in China would drop further next week.
Based on a regular monthly trading volume of 500t of silicon metal, the trader expects to sell around 300t in April, down by around 200t from last month, holding no stocks.
