Spot prices of 98.5% 553-grade silicon metal in Asia rose this week as sellers raised offer prices due to output cuts in South China.
Platts assessed the Chinese export spot price at $2,040-2,060/mt FOB China Thursday, up from $2,000-2,050/mt FOB a week earlier. The Japanese spot import price was assessed at $2,050-2,100/mt CIF Japan Thursday, compared with $2,040-2,060/mt CIF the previous week.
No deals for 553-grade could be confirmed this week. Offer prices from China were heard at $2,060-2,150/mt FOB this week.
While offers in China had risen by $30-50/mt this week, Chinese sellers conceded that deals were hard to conclude because of gaps in price expectations of buyers and sellers.
A Fujian-based producer and Hong Kong trader said they had received bids at $2,050-2,060/mt FOB. While the producer said the level was too low for his company, the trader said he was still in talks with his supplier in China to see if the bid price was acceptable.
In Japan, there were some end-user inquiries for 60-120 mt lots for January loading, but the wide range of offers pushed buyers to the sidelines.
One Japanese trader said Chinese producers in Yunnan province had offered $2,050-2,080/mt CIF Japan, for loading in the fourth week of January.
"One producer said the factory had no stocks, and would start producing when they receive orders," the trader said.
A second Japanese trader reported offers from Chinese traders at $2,100-2,150/mt CIF Japan, January loading from Huangpu. The Chinese traders also said they had thin stocks.
Two western traders had pegged the tradable price at $1,950-2,000/mt FOB though most sources in Asia said they did not believe such prices were mainstream.
One of the western traders said: "I don't think there are any bargains coming out of China."
Producers have raised offer prices due to output cuts and stoppages in Sichuan and Yunnan as power rates had risen with the start of the dry season in the hydropower-dependent south. Producers are also anticipating higher prices and tighter supply in January.
Transacted prices of Chinese domestic 553-grade silicon at Huangpu port had risen to Yuan 12,200-12,400/mt ($1,995-2,028/mt) on Thursday, up from Yuan 12,100-12,200/mt last Thursday. Meanwhile deals were reported for 441-grade 99% silicon metal. One Japanese trader bought 60 mt at $2,250/mt CIF Japan for January loading, while a Japanese secondary aluminum alloy smelter bought around 100 mt at Yen 230-235/kg ($2,230-2,280/mt) ex-warehouse near Nagoya port.
An offer for 3303-grade 99% silicon metal was also heard at $2,500/mt CIF Japan this week.
