The market price of low-grade silicon metal in China rose again during 17th to 19th of March, and the price meant for domestic consumption was up by CNY150 - CNY250 per ton from the end of February. As for the future trend, the market participants in China predict the possibility for price hike will be small and the price will continue to be flat for a while. 

 

The price of high-grade products in the silicon metal market in China after Chinese New Year holidays (18th to 24th of February) dropped, but the price of low-grade products went up to the contrary. This was because some of the trading firms made a positive purchase in anticipation of a future rise and recovery in the consumption in addition to the decrease in the supply in February.

 

In February, the shutdown of the plants in the main producing areas such as Sichuan, Yunnan, Hunan and Chongqing City prevailed due to slumping prices, and the operating rate went down to below 30%, which led to decreased supply volume. On the one hand, the demand increased owing to buying movement after Chinese New Year, and the trading firms which made a speculative purchase gave a boost to a price hike.

 

At the present moment, the purchase after Chinese New Year took a round, and the trading in the market is thin. In China, the aluminium producers as a customer have enough raw materials and their buying motivation is weak. Besides, as for the export, the buying motivation of the customers in Japan and South Korea which works as a driving power to create a demand is weak and the main item contracted during a thin trading is a cheap-priced product.

 

As to the future trend, many of market participants think the price will remain firm at the current level on a short-term basis although the demand is weak, and the change in the price will be seen after April when the application of comparatively high electricity rate for a low-water season in the southern region is scheduled to be over.