The market price of Chinese low-grade silicon metal got a boost this week as the business talk has at last become activated since entering March. The price meant for domestic consumption is up by about CNY100 - CNY200 per ton from the end of February.

 

This is because the aluminium industry restarted operation early and the supply of low-grade silicon metal became tight temporarily, whereas the resumption of producers' operation of silicon metal which was ceased in time with Chinese New Year holidays (18th to 24th of February) was delayed. The Silicon Metal Subcommittee of Silicon Industry of China Nonferrous Metals Industry Association has recently reported its statistics that the number of producers which operated as of the end of February in the main production areas such as Yunnan and Sichuan was about half of the number of producers which operated before Chinese New Year holidays.

 

Many of market participants think the situation of tight supply and price hike will come to an end in a short time for such reasons as (1) Producers in Hunan and Fujian will restart operation, (2) Increased supply will lead to increased market stock and (3) The demand from Japan as a main export destination is weak.