The silicon in January 2021

Silicon metal prices continued to fall this month. 553 rebounded slightly due to the shortage. In January, most downstream purchasers were likely to keep some stock. Due to the Spring Festival holiday, many factories prepared goods 1.5-2 months ahead of time. Some traders also plan to purchase at the lowest price before the year, so the price is obviously depressed. The market is also in constant decline due to some suppliers’ urgent need for capital turnover and large output.

Metallurgical grade silicon metal market
In January, metallurgical grade silicon metal market showed a downward trend. By the end of the month, due to the low operating rate, low social inventory, high price of the factory and unfinished downstream orders, the price had to rise with the situation of short supply in the market. The output of Xinjiang region was larger, so the market supply was more abundant, and the market transaction continued to fall. However, in the end of the month, the transportation was blocked after the capacity dropped. Southern also appeared out of stock phenomenon, prices began to stop falling.

Market of chemical grade silicon metal
In January, the silicon metal market fell. The local transaction prices in Xinjiang continued to fall. Because of the low operating rate of Sichuan and Yunnan in the dry season, it is the time for Xinjiang to show its production advantages. Most factories in Xinjiang consider 100% production. Therefore, the main production of in Xinjiang also brought a signal of spot surplus to the chemical grade silicon metal market.

Silicon metal export market
In December, China’s total exports of metallic silicon were 56955 tons, down 6.38%, year-on-year. In 2020, the total export of silicon metal was 619242 tons, a year-on-year decrease of 82233 tons. In January, the export market was relatively light, and domestic prices continued to fall. Overseas affected by the epidemic, the operating rate is low and the desire to purchase is not strong.