Chinese silicon metal smelters continue to raise offers
2013-01-06 08:55:07 [Print]
BEIJING (Asian Metal) 6 Jan 13 – Chinese silicon metal smelters continue to raise offers after the New Year holiday (January 1st to 3rd) and many smelters are holding back from selling materials under the low operating rate.
A source from a silicon metal smelter in Chongqing, which resumed production in late December, told Asian Metal that they sold a batch of 5-5-3 at RMB11,500/t (USD1,845/t) in ports in late December, and raise offers to RMB11,700/t (USD1,878/t) in ports now.
The source noted that the smelter had been out of production for a while due to the low market prices, and they resumed production as the prices increased in November and December. The smelter is running two furnaces of 6,300kva with an output of around 700tpm mainly for 5-5-3 and if the prices keep increasing, they intend to open more furnaces.
A trader in Guangzhou, with a regular trading volume of around 800tpm for silicon metal, reported that they purchased a batch of 5-5-1 at RMB11,800/t (USD1,894/t) d.d.p from Yunnan yesterday from a regular supplier, up by RMB300/t (USD48/t) against that in late December. The source noted that due to the power price rise in Yunnan, many smelters are holding back from selling materials now and some smelters raise offers sharply. The market offers are in a mess. The offers for 5-5-3 and 3-3-3-0-3 in Yunnan are around RMB11,400-11,500/t (USD1,829-1,845/t) and RMB12,400-12,500/t (USD1,990-2,006/t) Kunming respectively now, while the purchasing prices were around RMB11,200/t (USD1,797/t) and RMB11,900/t (USD1,910/t) Kunming respectively before the holiday.
The source noted that they stoked some silicon metal in December and have not added much stocks yet after the holiday. The source thinks that domestic silicon metal prices will continue to move up in the near future due to the limited output, and the final prices level depends on the supply and demand situation.
A source from a silicon metal smelter in Chongqing, which resumed production in late December, told Asian Metal that they sold a batch of 5-5-3 at RMB11,500/t (USD1,845/t) in ports in late December, and raise offers to RMB11,700/t (USD1,878/t) in ports now.
The source noted that the smelter had been out of production for a while due to the low market prices, and they resumed production as the prices increased in November and December. The smelter is running two furnaces of 6,300kva with an output of around 700tpm mainly for 5-5-3 and if the prices keep increasing, they intend to open more furnaces.
A trader in Guangzhou, with a regular trading volume of around 800tpm for silicon metal, reported that they purchased a batch of 5-5-1 at RMB11,800/t (USD1,894/t) d.d.p from Yunnan yesterday from a regular supplier, up by RMB300/t (USD48/t) against that in late December. The source noted that due to the power price rise in Yunnan, many smelters are holding back from selling materials now and some smelters raise offers sharply. The market offers are in a mess. The offers for 5-5-3 and 3-3-3-0-3 in Yunnan are around RMB11,400-11,500/t (USD1,829-1,845/t) and RMB12,400-12,500/t (USD1,990-2,006/t) Kunming respectively now, while the purchasing prices were around RMB11,200/t (USD1,797/t) and RMB11,900/t (USD1,910/t) Kunming respectively before the holiday.
The source noted that they stoked some silicon metal in December and have not added much stocks yet after the holiday. The source thinks that domestic silicon metal prices will continue to move up in the near future due to the limited output, and the final prices level depends on the supply and demand situation.
Silicon Metal 3-3-03 FOB China
Unit:USD/mt
China silicon metal producers' sales to production ratio statistics by province by month
Unit: %
