Silicon price dips again on weak demand
2009-07-01 15:09:16 【Print】
BEIJING (Asian Metal) 1 Jul 09 - Silicon metal price dips again due to the slow market. Participants reported that 5-5-3 and 4-4-1 prices are at about RMB8,600/t (USD1,265/t) and RMB8,900/t (USD1,309/t) ex works at the moment, down by at least RMB100/t (USD14.7/t) compared with last week
"Silicon metal market is flat, unchanged with that of last few weeks," said a trader in South China, whose trading volume drops to 200-300 tons per month this year, down by about 50% compared with last year. "We have to sell parts of silicon metal in domestic market, because there is almost no demand in the export market."
At present, the trader quotes USD1,570/t FOB and USD1,600/t FOB for 5-5-3 and 4-4-1 respectively, which are expected to be reduced by USD10/t at least for concluded prices. "Our clients claimed that they could purchase 5-5-3 at USD1,530-1,540/t FOB from China from other suppliers," said the source . "We have to reduce our prices accordingly to keep the relationship."
According to the source, smelters insist on quoting RMB8,700-8,800/t (USD1,279-1,294/t) ex works for 5-5-3 at present, but they could accept the concluded price of RMB8,600/t (USD1,265/t) ex works. "If you really want to buy, the price of RMB8,600/t (USD1,265/t) could be reached . "
Another trader in South China complained that silicon market keeps sluggish with no signs to become steady. "Consumers bid very low price, but smelters claimed that they could not reduce prices further," said the source . "We traders are in dilemma."
The source confirmed that there are deals at USD1,520-1,530/t FOB for 5-5-3, but he insists on USD1,550/t FOB at least. "I don't know why they could reduce their offers to that level," he said . "But we can’t find suppliers at lower price."
The trader said the mainstream price of 5-5-3 is still RMB8,700/t (USD1,279/t) ex woks at the moment despite that some smelters reduced prices to RMB8,500-8,600/t (USD1,250-1,265/t) ex works. "Price is a key factor for deal, but we also need to consider others like quality and stable supply . "
With impact of the economic crisis, the trader's silicon sales decreases by 40-50% to 300-400 tons per month this year compared with the same period last year.