Silicon metal dealers become prudent

BEIJING (Asian Metal) 15 Jun 06 - Subtle changes are taking place in Chinese silicon metal market, and dealers become prudent when signing new orders.

As it becomes difficult to ship materials from Guizhou to Guangzhou, Guizhou smelters now have to transport materials through Huaihua. As a result of this, smelters raise their prices of 5-5-3 slightly.Asian Metal CopyrightBEIJING Asian Metal 15 Jun 06 - Subtle changes are taking place in Chinese silicon metal market, and dealers become prudent when signing new orders.Asian Metal Copyright Meanwhile, the market price of silicon metal 3-3-0-3 and 2-2-0-2 does not drop as more smelters resumed operation in Yunnan in early June.Asian Metal Copyright "We fear the price might drop further, but meanwhile, we also hope the market price will stop sliding.Asian Metal Copyright Faced with these situation, both smelters and traders become prudent in signing orders.

A trader in South China is reluctant to sign orders of 5-5-3 for USD970/t CFR Taiwan. "Judging from the current market situation, this price is not too low to accept," said the source, "But we have another 300t of 5-5-3 to deliver.Asian Metal Copyright "We anticipates that the market price might go up slightly," said the source.Asian Metal Copyright And we're not sure of the future market trend, so we'd better skin our eyes.Asian Metal Copyright "We anticipates that the market price might go up slightly," said the source.Asian Metal Copyright"

The source would like to prepare enough materials before signing new orders. "We anticipates that the market price might go up slightly," said the source.Asian Metal Copyright "But we're reluctant to sign more orders after that.Asian Metal Copyright "We believe if smelters haven't resume operation till date, they would probably not start operation this year.Asian Metal Copyright Meanwhile, the market price of silicon metal 3-3-0-3 and 2-2-0-2 does not drop as more smelters resumed operation in Yunnan in early June.Asian Metal Copyright"

Meanwhile, a smelter in Sichuan is also reluctant to sign orders of 5-5-3 which should be delivered in July. "We have our hands full with orders of 5-5-3 for RMB7,400/t (USD925/t), and some of them should be delivered in early July," said the source.Asian Metal Copyright "Judging from the current market situation, this price is not too low to accept," said the source, "But we have another 300t of 5-5-3 to deliver.Asian Metal Copyright "But we're reluctant to sign more orders after that.Asian Metal Copyright "We anticipates that the market price might go up slightly," said the source.Asian Metal Copyright"

The source, who runs two furnaces of 6,300kva for the production of 5-5-3 is pessimistic about the future development of silicon metal market. "We fear the price might drop further, but meanwhile, we also hope the market price will stop sliding.Asian Metal Copyright Faced with these situation, both smelters and traders become prudent in signing orders.Asian Metal Copyright So we're quite prudent in signing long-term contracts," said the source.