The Demand In The European Silicon Metal Market Is Shrinking

Stimulated by the depreciation of the euro against the U.S. dollar, the mainstream price of Silicon Metal 5-5-3 in the European market rebounded by 50 euros/MT (€54/MT) to the current price of €2,100-2,200/MT ($2,278-2,387/MT) delivered compared to the beginning of last week. However, demand in the European spot market has shrunk. Industry insiders predict that due to the strength of the dollar and firm prices from international suppliers, the price of Silicon Metal 5-5-3 in Europe will remain strong next week.
A trader in Southern Europe revealed that his current offer for Silicon Metal 5-5-3 is €2,200/MT ($2,387/MT) delivered, with no concessions even for firm orders. This week, he sold 20 MTs at €2,200/MT ($2,387/MT), whereas, earlier last week, he would have accepted €2,150/MT ($2,332/MT) for similar inquiries. “Stimulated by the strengthening of the dollar against the euro, I slightly increased the price, although demand remains sluggish,” the trader revealed. He added that most buyers have reduced their purchasing volumes by half or even more due to sufficient inventory, but he expects the price of Silicon Metal 5-5-3 in Europe to remain strong next week under the firm prices of international suppliers. The trader, who typically trades 500 MTs of Silicon Metal per month, expects to sell around 200 MTs this month, a reduction of about 200 MTs compared to last month. The trader currently holds around 500 MTs of inventory.
A Western European trader disclosed that his current offer for Silicon Metal 5-5-3 is €2,150/MT ($2,332/MT) delivered, with no concessions even for firm bids in the Western European region. This week, he sold 30 MTs at €2,150/MT ($2,332/MT), whereas, earlier last week, he would have accepted as low as €2,100/MT ($2,278/MT). The trader revealed, “Stimulated by the depreciation of the euro against the dollar, combined with rising shipping costs from China to Europe in November, which will lead to higher import prices for Chinese Silicon Metal, I raised my prices this week.” He added that, due to sufficient inventory, more than half of his customers have not made purchases for the fourth quarter, while others have reduced their buying volumes. However, he expects the price of Silicon Metal 5-5-3 in Europe to remain strong next week in light of rising prices in China. This trader, who typically trades 300 MTs of Silicon Metal per month, expects to sell around 100 MTs this month, down by about 100 MTs compared to last month. He currently holds about 300 MTs of inventory.
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