Chinese Metallic Silicon Price Weakening

Chinese offer price of silicone metal #553 is declining, which is used as an additive metal for secondary aluminium alloy. Chinese offer price plunged by US$ 100 in a month to CIF US$ 2,250-2,300 per tonne. China represents more than 90% in Japanese total metallic silicon import.A Japanese dealer source described most metallic silicon users seemed to complete procurement for July-September in advance because they were concerned about price confusion and output regulation along Beijing Olympic in August. Current market dealing is stagnant after the situation and some suppliers seem selling their inventory at cheaper price.Meanwhile refining costs of metallic silicon is surging along the price increase of electricity and cokes. A source said Chinese offer price of metallic silicon is expected not to continue decreasing.Chinese metallic silicon price became strong in and after autumn 2007 and more than doubled in a year. However, Chinese price is still more competitive than metallic silicon produced in other countries. The international price is strong at CIF US$ 3,200-3,300 per tonne for metallic silicon produced in Europe, North America and South Africa.Silicon metal #553 is contained at 7-8% in secondary aluminium alloy.