European, Chinese prices steady ahead of Chinese New Year holiday

(Original: Metal Bulletin)

Europe 

• Grade 441and grade 553 silicon prices in Europe remained unchanged on thin inquiries and sufficient material availability. The market was quiet overall, reinforced by the week-long public holiday in China (February 4-10). 
• Trading was slow during much of the week, with very little spot business concluded; the price could find upward support after the Lunar New Year, according to some sources, due to production cuts from Norway-based ferro-silicon alloy producer Elkem and UK-based Ferroglobe. 
• However, most market participants are taking a watchful stance at the moment while demand is weak, price direction is not clear and the supply of aluminium is quite elevated. Silicon is used in the production of aluminium, meaning silicon demand is lower in times of high aluminium supply.

China

• Chinese New Year is also dampening demand for grade 553 silicon, with the Chinese price steady week on week on thin inquiries and trades concluded. 
• In a quiet market, suppliers have maintained their offer prices because silicon supply has been tight in Southern China due to reduced production. Producers in the region typically cut output during dry season when the lack of hydroelectricity means higher electricity costs. 
• Meanwhile some market participants said the fob price is likely to stay flat after markets return at the end of the Chinese New Year holiday (February 4-10) due to the stable fundamentals.