Chinese Silicon Metal prices trends

The restricted electricity policy and sluggish demand have led more and more manufacturers in Yunnan to prepare for production stoppages at the end of November or early December. Currently, the mainstream price for Chinese Metal Silicon #3303 remains firm at 15,500-15,800 CNY/MT delivered to the main port. Given the resilience in supplier prices, industry insiders expect the mainstream price of Chinese Metal Silicon #3303 to remain firm next week.
A manufacturer in Nujiang, Yunnan, revealed, "Due to local energy consumption restrictions, we will cease production on December 5. Nearby factories are doing the same, and we halted production for two furnaces in early November." He added that for Metal Silicon #3303, he cannot accept any price lower than 15,800 CNY/MT delivered to Huangpu Port, even though he has not closed any deals in the past week. He insists on the price from earlier in the week and sold 100 MT at 16,000 CNY/MT in early November. Anticipating a decline in production and firm quoting from manufacturers, he expects the mainstream price of Chinese Metal Silicon #3303 to remain firm next week.
The annual production capacity of this manufacturer's metal silicon is 55,000 MT, with an expected November output of about 2,800 MT, a decrease of approximately 1,800 MT compared to the previous month, and a stock of about 3,000 MT. The company has four 12,500 kVA ore-thermal furnaces and two 16,500 kVA ore-thermal furnaces, with currently four in operation.
A trader in Fujian revealed that he purchased 60 MT of Metal Silicon #3303 from a trader at the price of 15,500 CNY/MT delivered to Huangpu Port on Thursday, the same price the supplier insisted on delivering earlier in the week. The trader disclosed, "If you inquire with manufacturers, most of them insist on prices ranging from 15,800 to 16,000 CNY/MT because their production costs are high. Most manufacturers in Dehong, Yunnan, operated furnaces for 7 days and stopped for 2 days throughout November, and some even directly halted production in late November due to weak demand." Due to decreasing supplier production but high inventory levels for traders, he expects the mainstream price of Chinese Metal Silicon #3303 to stabilize.
The trader's monthly regular trading volume for metal silicon is nearly 1,000 MT, and due to active buying from overseas customers, he expects to sell around 1,500 MT in November, an increase of about 500 MT compared to the previous month, with no remaining inventory.
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