SHANGHAI, Dec 23 (SMM) - The silicon metal prices extended the weakness this week after falling for two straight months. As of December 22, the prices of standard 553# silicon in east China recorded 18,300-18,500 yuan/mt, down 150 yuan/mt; that of above-standard 553# silicon were 18,500-18,800 yuan/mt, down 200 yuan/mt; that of 421# silicon stood at 19,600-19,800 yuan/mt, down 450 yuan/mt. Downstream polysilicon manufacturers have released their orders for 99# silicon power, and the order price fell from 21,300 yuan/mt to around 20,800 yuan/mt. Most silicon powder companies still carried some spot stocks and restocked as appropriate. Overseas inquiries picked up, accompanied by the placing of export orders. The aluminium alloy plants generally purchased on demand. Hence it could hardly say that the silicon metal market has recovered.
The aluminium alloy enterprises received fewer orders as downstream die-casting companies were closed early for the Chinese New Year holiday in light of sluggish terminal demand. Amid the falling operating rates of alloy enterprises, the purchases of silicon metal were mainly made on demand. The operating rates of silicone enterprises were basically stable. The procurement and inquries of silicone monomer factories were weak, while DMC prices fell again to 16,600-17,300 yuan/mt after rebounding last week as a result of insufficient demand. And the overall purchases for silicon metal were disappointing. The capacity of polysilicon end enterprises continued to ramp up, boosting the overall supply. And the demand for silicon metal is expected to be robust for some time amid considerable profits though the polysilicon market is now oversupplied. Processing Of Complex Curved Metal Parts
On the supply side, the new production capacity of large factories in Xinjiang continued to ramp up, boosting the overall supply, while the manufacturers in Dehong Prefecture, Yunnan province are expected to be shut down extensively around the end of December. In the short term, the silicon metal market will still be troubled with the dilemma of strong supply and weak demand. It is expected that silicon metal prices will stay on the downward track next week as the year-end restocking among downstream players has failed to fuel the market sentiment.
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