November -- The summary of silicon metal market

Silicon metal prices continue to rise this month, around USD$15.00-USD$20.00 per tonne.The arrival of the dry season in the south forced most factories in sichuan and yunnan provinces shut down, and despite a modest surge in end-market purchases, the decline in output this year has also supported the price balance.The consumption capacity of the northern region is enhanced, and as the focus of silicon metal transactions shift to the north, the price of the northern region also continues to go up.

(I) Metallurgical grade silicon metal market:

In November, the price of metallurgical grade silicon metal continued to rise slightly. As the factory was in the period of production suspension, the output of silicon metal significantly decreased, and some factories were more reluctant to sell, so the prices continued to be strong. In the second half of this month, the price of silicon metal 553# has been basically stable, and some factories have consumed inventory before the year to avoid risks, but the actual transaction price has not fallen even in the face of the low price of the purchase market. The price of silicon in the northern market rose steadily, and the price continued to rise during the process of exploring the transaction price. 441# silicon metal north of the supply is less, the price is still in high level. The above market performance reflect the factory's expectations of price rising trend

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(II) Chemical grade silicon metal market:

In November, not a majority of orders were signed for chemical grade silicon metal. Considering the increase of electricity cost and other factors, the price of chemical grade silicon metal was slightly increased. In December, the end-market are expected to release some orders and the market will be more active.

Silicon metal market future forecast:

In November, with the high cost pressure in the production plant, the price is continuing to go up and relatively smooth till end of this month. The balance of supply and demand relations are stable, production in south area continues to decline while the price in north area is higher, and downstream acceptance of increasing price become better. In this case, the smelters for future price expectation will be strong, it is considered that the market price will remain stable or will continue to be raised in December.