silicon metal market trend
At present, the silicon metal market is not active, the high grade market appears small range of unmarketable situation, low grade market price is firm as the order is sufficient.
For the later market, buyers are generally think it bearish,reason as follows:
First, high electric price, strict environmental protection check and desulfurization denitration cost increasing may cause silicon factory delay production or lower production rate, but silicon metal production will still be significantly increased in wet season.
Second, strict environmental protection regulation strongly affact organic silicon factories in shandong, jiangsu, hubei, guangdong and downstream aluminum plant. They have to cut or stop production to lower to avoid all risks, and place order based on rigid demand only.
Third, China custom is strictly checking the declaration & tax in silicon metal exportation, customs declaration becomes more difficult in non-standard operation and rectification of tax. In order to keep competitiveness in the international market, export traders may force down the price in purchasing.
In summary, silicon metal market is bearish, trading mood is low also. silicon market should be in weak stability situation in short term.
