Spot offers for 553-grade 98.5% silicon metal in Asia inched up further as lower offers disappeared, while there was no significant change in trading volume, industry sources said Thursday.
S&P Global Platts lifted the Chinese spot export price for 553-grade 98.5% silicon metal assessment to $1,440-$1,480/mt FOB China Thursday, from $1,430-$1,470/mt last week.
The Japanese spot import price of 98.5% 553-grade silicon metal was assessed at $1,460-$1,480/mt CIF Japan, up from $1,440-$1,470/mt CIF a week ago.
"FOB offers are generally steady at $1,460-$1,490/mt this week, after a $20/mt fall last week. Delivered to Huangpu port offers are still at Yuan 10,300-10,400/mt ($1,495-$1,509/mt). Lower priced material is being sold out and producers in Yunnan and Sichuan have not restarted their furnaces yet," said a north China-based analyst.
Major Chinese silicon producers are located in Sichuan and Yunnan, which reply on hydro power for their operations.
"Traditionally, Chinese sellers will lower their offers in May-June to clear stocks, which is before the rainy season in June. I do not think offers can go down much further in May-June as some sellers started to lower their offers in April," the analyst said.
A north China-based producer who has plants in Yunnan and Fujian said its domestic offers were steady at Yuan 10,300-10,400/mt, delivered to Huangpu port, and FOB offers rose slightly week on week to $1,480-$1,500/mt on low stocks level.
An east China-based trader, however, heard a slight rise in domestic offers to Yuan 10,400/mt but a slight dip in FOB offers to $1,450-$1,460/mt.
"Some Chinese traders need to buy now to fulfill their orders to deliver at end of the month. They are buying from other domestic traders, thereby lifting domestic offers," the eastern Chinese trader said.
A Japanese trader, who had received offers in the range of $1,440-$1,530/mt CIF Japan, said: "Offers are all over the place".
A second trader said some Chinese producers have not restarted after suspending output six months ago and, for this reason, he has not seen offers below $1,450/mt CIF Japan.
Both traders said offers above $1,500/mt CIF would be rejected, adding they were not buying due to a lack of consumer buying interest.
