Spot offers of 553-grade 98.5% silicon metal in Asia rose in the week to Thursday, affected by the prevailing tight supply, industry sources said.
Platts lifted the Chinese spot export price assessment for 553-grade 98.5% silicon metal to $1,610-$1,650/mt FOB China, from $1,570-$1,620/mt last week.
Japan's spot silicon import price was assessed at $1,660-$1,680/mt CIF Japan Thursday, up from $1,580-$1,600/mt a week ago.
A northwest China-based trader heard an offer at $1,680/mt FOB, while an east China-based producer put offers at $1,650-$1,660/mt FOB.
"I heard offers at $1,680/mt FOB [for the non-oxygen blow grade] but did not hear anything done at the level," the trader said. "Supply is still tight as plants closed earlier due to weak prices have not resumed production yet."
The eastern Chinese producer said he had not heard offers at $1,680/mt, adding: "Offers are probably at $1,650-$1,660/mt FOB for the non-oxygen blown material and domestic offers are at Yuan 10,800-10,900/mt ($1,669-$1,685/mt), delivered to Huangpu port."
Oxygen is blown into silicon in the production process to remove impurities. The oxygen blown grade is about Yuan 200/mt more than non-oxygen blown ones.
An east China-based analyst agreed most sellers had no spot material at the moment, but said: "I heard offers [for non-oxygen blown grade] at $1,650-$1,660/mt FOB but done deals are mostly at $1,610-$1,620/mt FOB."
The eastern Chinese producer said he had spot stocks in April and would probably have material in May.
"Supply is still tight as the wet season is not here yet," a northeast China-based trader said. "Most producers are in southern China and rely on hydro-electric power for their operations. The wet season should be arriving at end-April."
However, a northwest China-based producer said: "There's a little bit of profit right now and plants are cautious, avoiding over-producing as it will dampen the price and affect the profit. The economy is still weak. There's a fear that the price may go down at the end of April if more plants resume production in view of the current profit."
In Japan, spot silicon metal prices jumped despite thin trade as spot supplies thinned on output cuts in China, industry sources said.
Japanese traders reported offers in the range of $1,660-$1,680/mt CIF Japan for May loading, mostly at south China ports. Supplies from north China via Tianjin port thinned on output cuts, a Japanese trader said. Trades this week were for small lots of 60 mt or less, reported done at around $1,670/mt CIF Japan.
"Some Japanese buyers are surprised with the price jump, so they have stepped out of the market despite the stronger Japanese yen favorable for imports," a Japanese trader said.
