Asian Metal visits some silicon metal smelters in Yunnan

On 15th to 16th August, 2012, Ms Yin Xiaohong, Analysis of silicon metal, in Asian Metal, visited some silicon metal smelters in Yunnan. Asian Metal learned the silicon metal production situation in Yunnan now and shared the ideas about the recent situation and the future trend of Chinese silicon metal market with them.

Asian Metal met the person from the below companies and discussed the market with them. Mr. Din Jian from Yunnan Honggui Logistics Co., Ltd; Mr. Lu Chengyun from Yunnan Zhenkang Huihua Silicon Industry Co., Ltd.; Mr. Duan Pengfei from Yunnan Yongchang Silicon Industry Co., Ltd.; Mr. Huang Xiaoze from Yunnan Zhongxun Silicon Industry Co., Ltd.; Mr. Han Xudong from Red Sea Silicon Co., Ltd.; Mr. Chen Wenkai and Xu Zhiwei from Yunnan Hen Silicon Industry Co., Ltd. and Mr. Xie Hong from Yunnan Guichu Logistics Co., Ltd. They appreciated Asian Meta’s information. Asian Metal will continue to be conscientious, objective and professional, and provide more valuable information to the metals market.

Chinese silicon metal market kept sluggish and the prices dropped continuously from the second half of February until mid-July. Chinese silicon metal prices have dropped to the level that was below many smelters’ production cost and the operating rate kept decreasing, so the market purchase increased a bit in the second half of July and the silicon metal prices rose slightly by around RMB100-200/t at the time. The overall silicon metal market is still not strong and many silicon metal smelters in Yunnan are not running with full capacity now. Into August, the power price in Baoshan, Yunnan decreases further and some silicon metal smelters resume production. The power price in other areas has not been re-adjusted yet. Buyers are inactive in adding stocks in large quantities now as the future market is unclear and the real demand has not picked up strongly. Chinese silicon metal market is in stalemate now. The future silicon metal market trend depends on the overall operating rate level in China and the demand recovery situation.