Possible export rebate retraction puzzles silicon metal traders
2005-04-29 09:10:07 【Print】
BEIJING (Asian Metal) 29 Apr 05 – Affected by rumors that the silicon metal export rebate will be canceled on July 1, 2005, silicon metal traders are hesitant to accept long-term contracts.
“Some long-term inquiries are in hand now, but we wouldn’t like to accept,” a Xiamen-based trader told Asian Metal. “The rumor is so strong in the market that we must do business carefully.”
The trader believes that the abolishment of the silicon metal export rebate will come sooner or later, as silicon metal is indeed one of the high-energy consumption industries. “China has taken some measures, such as increased power prices, to limit high-energy consumption industries,” said the source.
This week, the trader concluded a 40t deal for silicon metal 5-5-3 at USD880-885/t FOB CMP, delivered to Japan, adding that material costs were RMB7,800/t in ports.
A Hunan-based trader holds the same opinion. “We are reluctant to act on long-term contracts as there are too many risks.”
The source said that the power supply keeps getting tighter and tighter as summer approaches, adding that many regions have implemented power consumption restrictions.
Two weeks ago, the trader concluded a deal for silicon metal 3-3-0-3 at USD1,010/t FOB CMP, with materials purchased for RMB8,900/t in ports. "Currently, the mainstream export prices for 3-3-0-3 are around USD970/t FOB CMP," the source said.
