7th to 11th 2020 silicon metal market analysis
From 7th December to 11th December,2020, the silicon metal market has been sluggish. Most of the downstream factories have already prepared enough for just-needed consumption in the first two weeks of the continuous rise in silicon prices and when the market is optimistic in the later stage. Recently, most of the silicon metal factories are also ordering production and shipping. Of course, when the early gains are good, the downstream orders are promoted to be placed in advance. The concentration of orders is also a support point to stimulate the continuous rise of metal silicon. The operating mentality of the industry and the price trend are complementary.
However, from the perspective of the supply and demand of silicon metal, the price of silicon has not fallen. Only some holders are afraid to sell at low prices, and mainstream transactions in the market remain stable. In the special period at the beginning of the dry season, the prices of raw materials, electrodes, coal, and oil coke have risen, and the cost of electricity has risen more. The continued operation of many southern factories is also a result of the temptation of high profits to postpone production as much as possible. If silicon prices start to fall , Inevitably, the factories that can produce with their best efforts will stop suddenly, and the suspension of production can also stop the decline to a certain extent.
Looking at the consumption level of downstream enterprises, the aluminum market has recovered in a small amount. Although the start-up is still unsatisfactory, the commissioning rate of aluminum plants will increase by about 10% after the market transaction price rises; the export market has gradually recovered to the previous year's 80% level after September. In the first half of the year, the average monthly export volume has increased by 20,000 tons, and the order volume has also increased slightly before and after Christmas; the market price of organic silicon is relatively good, and the operating rate of the factory is generally higher, naturally, the consumption capacity is natural; there is no special situation for the polysilicon factory.
In summary, the downside of the silicon metal market is attributed to a small part of the industry, and low-priced goods take up a small proportion. It is expected that market transactions in the near future will be relatively light, with prices or stable operation mainly.