China’s firmer domestic market drives up silicon export price

Chinese silicon exporters raised offer prices in the week to Friday August 21 because of the unavailability of cheap material from domestic producers given tight spot supply, but overseas consumers have found higher prices almost impossible to accept, Fastmarkets learned.

Fastmarkets’ weekly price assessment for silicon export 98.5% Si min, fob China was $1,420-1,480 per tonne on Friday, up by $15 or 1% from $1,420-1,450 per tonne a week earlier.
Most sellers made offers above the assessed range while reporting very limited deals concluded within the range.
Restrained production
The production of silicon in China has been curbed since the outbreak of the Covid-19 virus. Reduced downstream demand, uncertain economic outlook and declining prices discouraged producers in southern China from actively resuming operations when the wet season started in late May and early June, according to sources.
Silicon plants in southern China usually intensively produce the material during the wet season to take advantage of cheap hydroelectricity, which accounts for more than half of silicon production costs, Fastmarkets understands.



Ruby Liu

August 24, 2020

10:37 GMT