[Ferro-Alloys.com] In the last week, China Non-Ferrous Metals Industry Association announced that 14 Chinese aluminum industries prices has a total cut production 4.41 million tons until now, the annual cut production will reach about 4.91 million tons in 2015, and this will increase at least 500,000 tons production capacity before the end of the year. Hydro Aluminium predicted that the demand will increase by 4-5% next year, and the average annual increase over the next 10 years will be 3-4%. Brandtzaeg said the global annual production of aluminum nearly 60 million tons, the current market excess supply 100-200 million tons, stocks continued to increase in aluminum prices dragged down. Aluminum prices increase indirectly silicon metal products difficult to sell, while still on-demand procurement silicone business makes silicon metal excess inventory have no market price.

According to manufacturers introduced in Inner Mongolia factory recently, because the production electricity will down again, down in the range RMB 0.02-0.03 / kWh. The late production costs also have some positive effect, but some factories still said the weak market demand in the short term will not be a large area of ??production. The Fujian high-grade silicon metal grade quotation from the previous month and now has raised, one is represented Fujian factory price increases, increased production costs inevitably increase offer, on the other hand is the southern factory operating rate dropped gradually make the price strong. Last December- mid, silicon metal products by the downstream organic silicon, polysilicon, aluminum diminished demand and other factors, the downstream business generally will not stockpile, market inquiry diminished.

The Guizhou Government Department that support for silicon metal business, because of silicon metal industry international market downturn, corporate sales at lower prices, the loss of RMB 2,000/ ton .To allow enterprises to continue production, reduce losses, Luodian county take product pledge, lending to enterprises to maintain production, to be improved silicon metal market, companies selling products and return the pledge gold. Guoxin company currently has RMB five million pledge gold; plans to come up with RMB 50 million of funds pledged Ming Sheng, Guoxin two companies of around 5,000 tons of silicon metal products.

According to the silicon metal business introduction, towards the end of year, in order to ensure the safety of funds of enterprises and continue to deal with the reduced demand in the downstream, combined with rising production costs, silicon metal market turnover continued to slump. In stock for discontinued businesses, now sell products, but also more shipments after first hit in the form of trading, of course, part of the cash acceptance. After the end of silicon metal enterprises to reduce risk, return of funds, required to first shipment. Conventional silicon metal cash market turnover has been relatively common, but the presence of a large part of the advance and then shipped the first hit. Silicon metal market prices still remain at this stage the situation is running we predicted.

The price chart in this week:

• [Editor:tianyawei]