The spot prices of 553-grade 98.5% silicon metal in Asia were assessed in wider ranges this week as industry participants waited for signs of market direction and for trading to pick up following the end of China's National Day October 1-7 holiday.
The China spot price was assessed by Platts at $2,120-2,170/mt FOB China Thursday, compared to $2,120-2,150/mt FOB on September 25.
There was no assessment on October 2 due to the holiday.
The Japanese spot import price for the same product was assessed at $2,140-2,160/mt CIF Japan Thursday, compared with $2,150-2,160/mt CIF a week earlier.
Deals and offers were sparse this week as China had just returned from holidays on Wednesday, with only a Japanese trader reporting a 40-mt deal at $2,140/mt CIF Japan ($2,120-2,130/mt FOB China), for November loading from Huangpu or Xiamen.
A Hong Kong-based trader had offered at $2,180/mt FOB for end-October loading from Huangpu, the offer was $50 higher compared with late-September before the holidays.
A Gansu-based trader offered at $2,240/mt FOB this week, up $20 from before the holidays, for end-October loading from Huangpu.
Sources had pegged the tradable price at $2,120-2,170/mt FOB.
Most industry watchers agreed market fundamentals remained unchanged from before the holidays and that spot material remained tight.
"Spot material of 100-200 mt is still hard to find in the market," said the Hong Kong trader.
An official with a producer with plants in southern and central China said he did not offer to the export market this week but that Chinese domestic offers were little changed from before the holidays.
"People are putting out the same offers (as before the holidays) to see if the market will accept the prices. We'll need to wait another week to see if the market changes or not," he said.
Operating rates in major production regions in the country have remained steady at around 70-80% over the past one to the two months, said a Beijing-based silicon analyst.
Any changes in supply would only come when the dry season in the south starts, he said.
Power prices in the hydropower-dependent south tend to rise when the dry season starts usually around end-October and producers would typically cut or shut output in response.
However a Shanghai-based silicon analyst said she sees some softness in the market and is not ruling out lower prices next week.
"Some factories have said that overseas customers find current prices too high and they are closing very few deals...They are thinking of lowering prices," she said.
Sources pegged the tradable price of Chinese 553-grade silicon at Huangpu port at Yuan 12,800-13,000/mt ($2,086-2,118/mt) on Thursday, compared with Yuan 12,700-13,000/mt on September 25.
