Si metal supply squeezed on producers halt
2005-01-12 09:12:51 【Print】
BEIJING(Asian Metal) 12-Jan-04 As it is estimated, Chinese silicon metal supply from the smelters has been squeezed seriously since late December, 2004, due to the power shortage. On the back of that, the leading producers, which have suffered so long from the sluggish market conditions, are reported to increase the quotations these days.
Despite the power shortage in south China, the slow business and the depressing prices contributed greatly to the halt of the producers as well. A source close to the producers in Guizhou revealed to Asian Metal today:"Both the largest producers in Guizhou have reduced the output significantly at the moment." So far, only about 1/4 of the total production capacity of the two smelters, which own about 50 furnaces, were left on stream.
Meanwhile, quite a number of the smaller plants are obliged to shut down as well. "Our furnace was closed late December and will not open again till this April."said a Guizhou based smelter, with 300tpm output.
Being aware of the tight complement of the materials, several domestic traders appeared to cherish the stocking at the moment.
"We are not going to accept any price lower than $930/mt FOB for silicon metal 5-5-3,"said a Beijing based trader, who claimed to hold 3,000mt stockings in the hand. The spokesperson disclosed to have refused the orders at the price of $920/mt FOB, as the company is seeing a warm-up market in one or two months later.
Considering the high cost of accumulations and the squeezed supply in the first quarter, traders tend to hold off, although the stalemate between the two sides has not been eased yet. The foreign buyers are said to offer no higher than $920/t FOB recently, while a Xiamen based trader said:"Even $930/mt is not charming enough for us." The trader is now waiting for the bids from the Japanese consumers in the second half of this month, but it is still uncertain how the amount would be then.
Despite the power shortage in south China, the slow business and the depressing prices contributed greatly to the halt of the producers as well. A source close to the producers in Guizhou revealed to Asian Metal today:"Both the largest producers in Guizhou have reduced the output significantly at the moment." So far, only about 1/4 of the total production capacity of the two smelters, which own about 50 furnaces, were left on stream.
Meanwhile, quite a number of the smaller plants are obliged to shut down as well. "Our furnace was closed late December and will not open again till this April."said a Guizhou based smelter, with 300tpm output.
Being aware of the tight complement of the materials, several domestic traders appeared to cherish the stocking at the moment.
"We are not going to accept any price lower than $930/mt FOB for silicon metal 5-5-3,"said a Beijing based trader, who claimed to hold 3,000mt stockings in the hand. The spokesperson disclosed to have refused the orders at the price of $920/mt FOB, as the company is seeing a warm-up market in one or two months later.
Considering the high cost of accumulations and the squeezed supply in the first quarter, traders tend to hold off, although the stalemate between the two sides has not been eased yet. The foreign buyers are said to offer no higher than $920/t FOB recently, while a Xiamen based trader said:"Even $930/mt is not charming enough for us." The trader is now waiting for the bids from the Japanese consumers in the second half of this month, but it is still uncertain how the amount would be then.
