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A source from a silicon metal smelter in Yunnan, running two furnaces of 12,500kva, noted that demand for low-grade silicon metal is stable and the prices increased sharply with 5-5-3 and 4-4-1 getting higher by around RMB200/t (USD32/t) to around RMB10,900/t (USD1,755/t) and RMB11,400/t (USD1,835/t) Kunming respectively this week. The smelter mainly produces high-grade silicon metal. The source claimed that the prices did not increase fast recently, but they sold few materials in the recent one month, thinking that Chinese silicon metal prices will increase further in the dry season. According to the source, they quoted 2-5-0-2 and 2-2-0-2 at RMB12,000/t (USD1,929/t) and RMB13,000/t (USD2,093/t) Kunming respectively recently, with no deals being concluded. As for 3-3-0-3, the source claimed that market prices for 3-3-0-3 are around RMB11,600/t (USD1,867/t) Kunming now, and they intend to sell materials until prices for 3-3-0-3 increase to over RMB11,800/t (USD1,900/t) Kunming.
The source thinks that with the power price increasing and the operating rate decreasing gradually, the overall silicon metal market will move up further in the near future, so they still hold back from selling materials now.
A source from a silicon metal smelter in Fujian, with a current output of around 800tpm mainly for 3-3-0-3, reported that the prices for 3-3-0-3 increased from around RMB11,800/t (USD1,900/t) ex works to RMB12,000/t (USD1,932/t) ex works in the past days and keep stable at the level this week.
The source claimed that demand for high-grade silicon metal was relatively smaller and the prices did not increase as fast as that of low-grade silicon metal. Looking ahead, the source thinks that Chinese silicon metal prices will increase further in the near future, but the rising margin will not be very large as demand is not very strong.