Chinese Silicon Metal Producers Hold Firm on Prices

Chinese silicon metal 7-8-3 producers complained of low margins due to inactive buying activities by downstream consumers and thus held firm on prices during the week. The current mainstream price is RMB 12,500-12,800 per tonne ex-works cash, in line with the beginning of the week. Given producers' refusal to cut prices, industry insiders predict prices will remain stable in the coming week.

A producer in Sichuan said he was offering CNY12,700/mt ex-factory cash for silicon metal 7-8-3 and refused to sell below that, but no deals were struck today. "I just sold 30 tonnes to a trader in Guangzhou yesterday at CNY12,800/tonne delivered to cash (including about CNY300/tonne freight)," the producer said." As the government requires us to buy at least 30 per cent thermal power, my tariff is still as high as RMB 0.44/kWh, so I will stick to that price." He predicted prices would remain firm over the next few days.

The producer has an annual capacity of 14,400 tonnes and plans to produce 1,200 tonnes in June, an increase of 300 tonnes from May. He currently has no stockpiles. production in 2023 will be around 8,000 tonnes.

Another producer in Sichuan noted that he was offering 12,700 yuan per tonne ex-works cash for silicon metal 7-8-3, but no deals were struck today. "I just sold 100 tonnes to an old customer yesterday at 12,600 yuan) tonne without any concessions. I am in no hurry to sell due to limited stocks," the producer said." I sold a total of about 200 tonnes in the $12,600-12,700/tonne price range this week." He is taking a wait-and-see approach and predicts prices will remain stable over the next week.

The producer has an annual capacity of 15,600 tonnes and plans to produce 1,300 tonnes in June, an increase of 500 tonnes from May. He currently has no stocks. production in 2023 will be around 10,000 tonnes.