Dealers optimistic towards silicon metal market
2006-07-28 14:31:51 【Print】
BEIJING (Asian Metal) 28 Jul 06 – Chinese silicon metal market keeps firm on the back of increased production cost. But market participants reported that conclusions are not increasing so quick as export price touches USD1,020/t FOB for 5-5-3 and USD1,050/t FOB for 4-4-1. However, dealers are positive towards the future development of silicon metal market.
Sources reported to Asian Metal the mainstream price for 5-5-3 is RMB7,700-7750/t (USD962-968/t) and RMB8,050-8,100/t (USD1,006-1,012/t) for 4-4-1. “Smelters have higher expectation for silicon metal price and some are trying their best to put more furnaces into operation,” said a trader in South China who is signing orders of 5-5-3 for USD1,020/t FOB and USD1,050/t FOB for 4-4-1.
According to the source, they are receiving more inquiries as prices are increasing. “But concluded deals are not many and we’re only signing small orders for prompt delivery,” said the source, “So we can’t be too optimistic about silicon metal market.”
Nevertheless, the source believes silicon metal market will keep firm in the following months when overseas consumers are fed with limited amount of materials.
“There are more inquiries this week, and we even receive some inquiries from new customers,” said another trader in South China, “But we’re prudent in signing new orders despite the good prices of USD1,020/t FOB for 5-5-3 and USD1,050/t FOB for 4-4-1.”
The source stated that it takes more time to ship materials to ports because the speed of train has been reduced due to the abnormal railway condition.
So the source stated that they are not selling much this week. “Other traders also have the same situation,” the source stated, “This might suggest that there’s not much room for the price to rise.”
