The China spot price of 553-grade 98.5% silicon metal was assessed slightly higher this week at $2,130-2,170/mt FOB China, compared with $2,120-2,170/mt FOB a week ago, as Chinese sellers -- despite slow demand -- kept export offers high in anticipation of tighter supply.
The Japanese spot import price for the same product was assessed at $2,140-2,160/mt CIF Japan Thursday, unchanged week on week on limited deals with Japanese buyers.
This week, a producer with plants in southern and central China sold a total of 480 mt at $2,150-2,165/mt FOB to buyers in Europe and Southeast Asia, October-November delivery from Huangpu.
No other deals could be confirmed. Market participants in China and Japan reported offers in the range of $2,140-2,190/mt FOB for non-oxygen-blown material, while one offer for oxygen-blown material was heard around $2,260/mt CIF Japan.
Deals have been hard to close this week as buyers find current offer prices too high, sources said. Two producers said their customers were looking to buy at $30-50/mt lower than their offer prices of $2,150-2,180/mt FOB, which were not acceptable to the sellers.
Chinese sources also said current supply is not as tight as it was in September. But some suppliers with stocks are limiting sales to support prices, also in anticipation of higher prices when the dry season in southern China starts, a Hong Kong-based trader said.
Power prices in the hydropower-dependent south tend to rise when the dry season starts, usually around the end of October, and producers would typically cut or shut output in response.
A Shanghai-based silicon analyst noted a drop of Yuan 100/mt ($16/mt) in the domestic offer prices among some producers who were experiencing weak demand.
"Prices may fall by another Yuan 100/mt before support comes at the month's end [when the dry season starts]," she said. Some suppliers may lower prices further if demand stays weak but domestic prices are unlikely to fall below Yuan 12,500/mt, she said.
Sources Thursday pegged the tradeable price of Chinese 553-grade silicon at Huangpu port at Yuan 12,800-13,000/mt ($2,083-2,116/mt), unchanged week on week.
