[Ferro-Alloys.com] Recently, silicon metal market was stable, most manufacturers maintain the frequent customer transactions, actual the demand of silicon metal did not improve, manufacturers, traders watching the market-based, buyers can not hoard goods, many enterprises currently shutdown and just sale inventory-based, near the end of year, some companies to sell low-priced inventory also occur, but despite the current low prices, some buyers should shop around for low-cost procurement, resulting in the current silicon metal market chaos, despite the current price of some transparent, but the actual overall turnover is still not ideal.

Currently South Yunnan, Sichuan, Hunan, Guizhou provinces basically in shutdown state, while executing the end of Fujian, some manufacturers will choose shutdown for electricity, and currently in production enterprises in the implementation of long-term orders, but the current market spot reduction. The northern region of Inner Mongolia, Xinjiang region rely on the advantage of annual electricity price, now the operating normally, and there are recent reports about to cut the price of electricity in  Inner Mongolia, if the company put into operation, then the market will be concentrated in the latter part of the northern, but also when it comes to foreign media Inner Mongolia region Some ferroalloy enterprises in converting silicon metal, if that is true, then, that next year the site in January silicon metal market rebound is still under pressure, for the following reasons:

1. Currently manufacturers offer although strong but the overall real demand has not improved, the downstream business demand procurement and to maintain the majority of customers;

2. North and South started differentiation has occurred, is currently concentrated in the northern Inner Mongolia, Xinjiang, Xinjiang region mainly supply chemical grade silicone plant-based, silicone and large domestic enterprises are concentrated in Shandong, Tangshan, Zhejiang, Jiangxi and other regions (and global Silicones from Dow Corning in domestic demand more, as well as Japan Fuso Chemical, Korea KCC and other needs), in recent years, rapid growth in the development of silicone while the demand for chemical grade silicon metal on the rise, in the long run Look chemical grade silicon metal still acclaimed;

3. At the same time the needs of the downstream aluminum also makes silicon metal consumption increases, and now the domestic consumption of silicon metal annually, wide aluminum applications, lightweight, aerospace development and application of more;

4. commonplace problem: overcapacity, the domestic steel industry, the aluminum industry, non-ferrous metal industry bureau is facing this problem, but to get silicon metal, the domestic export volume and domestic consumption less, while the metal silicon largest trading partner Japan demand in China and South Korea decreased (customs data showed monthly imports at decreasing), Japanese, Korean imports of silicon metal aluminum automotive industry more widely applied, while Japan and South Korea have large domestic organic silicon production enterprises consumption, so the context of globalization of domestic enterprises and international organic silicon organic silicon business demand for silicon metal is guaranteed;

5. The polycrystalline silicon photovoltaic industry in recent years, relying on state subsidies policy, while there are some large corporate investment projects, PV installed capacity is growing, December 23 the State Council decided to cut coal tariff with effect from 1 January 2016, this measures will reduce the national grid with silicon, aluminum production enterprise production costs to the enterprise confidence;

6. Xinjiang, Inner Mongolia 39 silicon plant, a total of 159 sets of silicon metal furnace, started 94 units, the operating rate of 59.1%. By the impact of the recent market downturn, Xinjiang reduction, shutdown enterprises increased, companies operating rate. Currently, new production of silicon metal pre-market enterprises pause start, delayed resumption of production shutdowns, and expressed no plans to start late, leading to reduced market supply, low willingness to low-cost shipping companies. Inner Mongolia tariff cut, plus pre-shipment situation improved slightly, the resumption of production silicon plant more, but overall the market price was still confusion. Shaanxi silicon metal business is prepared to shut down next year, start-ups, so the northern market is not as people would like, short-term market difficult to have improved.

7. Inner Mongolia region now price RMB0.37/ kwh, electricity prices down marginally, perhaps down RMB0.016-0.048 / kwh, a lot of silicon metal businesses that see the situation now consume the stock market, it will be determined depending on the size of price rises whether production.

• [Editor:tianyawei]