Because the change of terminal demand is not obvious this month, buyers were not accepted current price level even it's already in the bottom. The low grade price of silicon metal has a small correction compared with the end of August, among which 553 non-oxygen is the most obvious, and it has been lowered by about USD$50.00/MT compared with last month. The overall decline of other brands is not significant. Construction in Sichuan, Xinjiang and other areas increased slightly, while construction in other areas are still remain the same capacity. Most smelters exposed that the high production cost makes profit margin very limited, the enterprises are already facing losses.
(I) Metallurgical grade silicon metal market:
In September, metallurgical low grade silicon metal market was returned calm after August significantly increased operation, buyers were not accepted such high price so that the market transactions were affected, some factories adjusted the price to stimulate the market instead of insisting high price, so the overall market was fluctuated from Sep.In addition to 553 non-oxygen grade fells significantly while other grade with the slightly adjustment to keep the closer price range. But the market also exists low transaction phenomenon and the port price just keep little changes. Si 441 is in short supply in Xinjiang and Si 3303 is now produced by very limited factories in Xinjiang area as well.
(II) Chemical grade silicon metal market:
In September, the market price of chemical grade was stable with a slight increase. The signing price of some organic silicon plants was increased about USD$30.00/MT, but most organic silicon plants was basically stable. Most plants still have a backlog of inventory in the early stage, and considering that the current is not a dry season, the market supply is balanced and the purchase volume is stable, so there is no obvious change in price. According to previous market experiences, some of the orders will be finalized after the National holiday, it is expected that chemical grade silicon metal market is basically stable in October.
Silicon metal market future forecast:
In September, the overall trend of silicon metal market is not optimistic, but the factory still maintains the cost principle in the price concession and remains reasonable shipment. At present, orders in the terminal market are not active, and traders are basically consuming pre-inventory, so the overall volume of silicon metal trading is relatively less. In the early stage of National Day holiday, the market is in wait-and-see rhythm, but most factories are more optimistic about the market trend in the later stage, believing that some orders will be released after the holiday. However, the current market inventories are still in consumption period, the price may rise at the time point from the water season to the flat season transition period. In addition, we will hoard the inventory in the following dry season, so the intention of shipment is not strong, but the overall price still depends on the relationship between supply and demand.
