Silicon Metal Offer Price Increasing

Offer price for silicone metal #553 is increasing which is used as sub material for secondary aluminium alloy ingot. The offer price is surging to around US$ 1,320-1,330 per tonne for July-September 2007 shipment, up by more than US$ 100 compared with April-June 2007 and by about US$ 400 compared with July-September 2006, when electric power charge is increasing in China, the largest producer of silicon metal. Japanese secondary aluminium alloy makers are concerned about the upsurge of the offer price since the makers are already suffered from higher material costs and cheaper secondary aluminium alloy ingot price.In China prepayment system was introduced for electric power charge recently. Small plants of silicon metal became suffered from worse cash flow and forced to stop the operations. Consequently silicon metal supply became tighter. Silicon metal producers are offering the higher price to reflect higher productive costs such for fuels and labors and appreciation of Chinese yuan as well.Secondary aluminium alloy makers keep active operation to meet strong demand from auto industries. Silicon metal is contained at 7-8% within secondary aluminium alloy ingot. Secondary aluminium makers have not reflected the higher productive costs for fuels, distributions and sub materials on the ingot selling price enough yet.