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Price of Chinese low-grade silicon metal still shows a continuous fall in December, and the price meant for domestic consumption as of December 8 is down by CNY200 per ton from the end of the last month. Albeit the supply from producers decreases due to the price hovering at a low level and the increase in production cost, the demand itself is weak and there is no sign of the price having bottomed out.
In Chinese domestic market in the first week of December, the price of 553 grade as low-grade products drops in stages, and the price for domestic consumption dropped by CNY200 in a week. Many of traders concerned with the market have an anticipation of a continuous price fall, and still take a wait-and-see stance for purchase.
At the moment, the electricity rate for a low-water season is applied in many of main producing areas for silicon metal, and as the production cost rises contrary to the market price hovering at a low level, the producers which will stop operation due to money-losing management continue to increase.
For that reason, although the supply volume surely decreases, the inventory for distribution in the market is still sufficient. The demands for high- and low- grade products are weak, and the demand and supply balance continues to be in excessive supply.
What's more, as to the export, the shippers' motivation to buy is low while detesting yen and won depreciations. Albeit both shippers and customers want to buy in the low-priced range, they also are on alert against the risk of suffering from exchange losses arising from in-hand inventory at the time of settlement of accounts in the end of December.
For a reference, the price of 2202 grade as high-grade products remains unchanged from the end of the last month, but the price of 3303 grade dropped by CNY50 per ton.
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- [Editor:tianxiao]
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