Chinese Metallic Silicon Price Seems Leveling Off

Spot price of Chinese metallic silicon is leveling off at US$ 2,100-2,200 per tonne. The current price is lower than US$ 2,200-2,300 of Chinese suppliers’ offer for April-June. Metallic silicon price had continued soaring up since last year.Japanese secondary aluminium alloy makers use metallic silicon 553, 90% of which is imported from China. Metallic silicon price usually surges up in winter when water level becomes lower and electricity shortens.The price more than doubled in a year due to supply tightness. In January 2008, serious power crisis emerged in China and metallic silicon refineries paused production. Impacted by the output stoppage, Chinese offer price for April-June soared by 30% to US$ 2,200-2,300 per tonne compared with January-March.However, Japanese trader source said power supply partly recovered in March and some refineries restarted metallic silicon production. Supply became easier and market price seems leveling off. Low-water season would end by mid April and power supply could recover to the normal level. With output restart, metallic silicon price may continue declining.