SHANGHAI, Oct 14 (SMM) - Silicon metal prices rose after falling this week. As of October 13, the prices of standard #553 silicon stood at 20,000-20,300 yuan/mt in east China, up 200 yuan/mt from before the National Day; above-standard 553# silicon 21,000-21,400/mt, up 150 yuan/mt or 1%; 3303# silicon 21,900-22,100 yuan/mt, up 200 yuan/mt or 1%; and 421# silicon 21,800-22,100 yuan/mt, up 100 yuan/mt. During the National Day holiday, affected by factors such as the pandemic in Xinjiang, the silicon market held a strong bullish outlook. After the holiday, due to the price cut of major manufacturers and the influence of the aluminium alloy sector, the market outlook reversed. As such, the prices of metallurgical-grade low-grade silicon fell slightly. However, the follow-up price hike of major manufacturers, intensified pandemic situation in Xinjiang and the procurement of grinding plants boosted the confidence of the silicon metal market.

The operating rates of aluminium alloy enterprises in October are expected to decline from September. The output may also fall as the downstream demand has not been significantly repaired. In addition, although the production of primary aluminium alloys remained normal during the National Day holiday, some companies may reduce the production as the orders during the peak season are unlikely to extend. Most of the enterprises purchased only as needed. The demand for silicon metal from polysilicon enterprises was still booming. The bids of silicon metal powder were released this week, and orders of other enterprises are expected to release gradually. The demand for 551#, 521# and 441# silcon was strong. The operating rates of silicone enterprises declined. Affected by the strong supply and weak demand, the prices of DMC were low. With the increase in maintenance of silicone monomer enterprises and the reduction in supply, DMC prices are expected to stabilise. The purchasing prices of 421# silicon stood at 21,700-22,100 yuan/mt this week, and the price spread between low-grade silicon narrowed.

Affected by the pandemic, the freight rate in Xinjiang, Sichuan, Kunming and other regions rose by 50-150 yuan/mt. Recently, the release of polysilicon bids have stimulated the demand for silicon metal. It is expected that the prices of silicon metal will stabilise next week.

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