Silicon Metal to keep rising on output cuts and rising raw material price
This week, silicon metal price of all specifications rose, and 553# led the gain, with traded prices at ports advancing by 500 yuan per ton within the week. Price of chemical-grade silicon metal also advanced due to tight supply, with 421# up 400yuan per ton in the week.
Output cuts from environmental factor and rising price of raw materials will continue boosting silicon metal price in China.
This week, the central environmental protection inspection team arrived in Sichuan, and next week, the number of silicon metal mills which will be required to suspend production is likely to grow.
Moreover, raw material prices, such as high-sulfur coke and graphite electrode, are still on the upward track, growing production costs at domestic silicon metal producers, bode well for silicon metal price.
In other news, markets’ survey finds that utilization rates at domestic silicon metal producers are 49.43% in July, up 2.61 and 2.13 percentage points, on a yearly and monthly basis, respectively. The rate in July may be the highest level of the year. We China’s silicon metal exports are also expected to fall in August on a monthly basis as trading sentiment waned from late July.
