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Price of Chinese Silicon Metal Anticipated to Stop Declining
= Rate of producers in operation in December is anticipated to be reduced to around 30% =
The price of silicon metal in China has been declining gradually since the end of October, and the price of low-grade product of 553 grade is now down by CNY800 per ton from the end of October. However, such anticipation comes up to the surface as the brake will be put on the price drop due to the commencement of the application of a relatively high electricity rate for a low-water season and the incidental expansion of shutdown of the plants.

In China, in Yunnan whose production of silicon metal ranks first, the application of an electricity rate for a low-water season has already started form December 1 and the production cost is up from the period from October to November as the application of a relatively cheap electricity rate for a full-water season finished.

Silicon metal producers in China which operated the plant in November amounted for slightly less than 43% of the total, but its rate is anticipated to be down to around 30% in December due to the increase in the production cost, and it is almost sure the supply volume to the market will be reduced, and the state of oversupply is expected to be improved through being balanced out by weak demand.

In the market, the possibility about price hike due to decreased supply is denied. In case the consumption in the aluminium secondary alloy industry and the polycrystal silicon industry drops more than expected, there is a possibility that the price will drop furthermore, and therefore many of the market participants do not look to the future with some optimism.

What's more, the price hike is understood to be difficult due to the scarce factors for the price hike such as the increase in the demands for domestic consumption and international export until the end of the year, and there is a future feeling of an anticipation of a price fall in the market because the sales at a cheap price by the producers which are in a hurry to convert products into cash toward Chinese New Year (7th to 13th of February) after the turn of the year is anticipated.
last modified : Fri 11 Dec, 2015 [10:30]
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