The silicon market was basically on hold last week but the long-term signs were less than promising. In the US, a few secondary aluminum producers finalized their July silicon requirements at prices around $1.16 per lb, ddp, or up around 1￠ for June. However, the suppliers were mostly in a tight range below $1.20 per lb.
The European silicon market took a hit when a large secondary aluminum producer declared the equivalent of Chap. 11 last week. The producer is still producing but it might be forced to change its business practices. Also, many European silicon suppliers may have been caught by the bankruptcy and are owed money.
The European silicon suppliers did receive some good news. Official imports of Chinese silicon into Croatia were only 6,892 mt in the first five months of 2013, but 4,868 mt was shipped in May. Analysts now believe that “only” about 10,000 mt of Chinese silicon will have cleared Croatian customers prior to the country’s admission into the EU not the 20,000 mt feared.
“I think most of the material has already been sold so it won’t be available to the spot market,” one supplier opined. “It won’t have that much ill effect on the market.” Many consumers didn’t want to buy forward despite the offers of cheaper prices since they were unsure of demand and the strength of the market for the remainder of 2013.
Chinese silicon metal market has weakened due to persistently weak demand and lower production costs. With the rainy season in southern China, smelters are getting cheaper electricity prices. Export prices for 5-5-3 metal have eased to $1,830-1,850 per mt and 4-4-1 metal prices have slipped to $1,930-1,950 per mt.
China exported 258,450 mt of silicon in the first five months of 2013 vs. 187,446 mt in the same months of 2012, thanks to the removal of the 15% export tax. The major buyers in the first five months of 2013 (same 2012 period in parentheses) were: Japan, 42,169 mt (61,483 mt); South Korea, 39,096 mt (27,643 mt); Thailand, 18,402 mt (11,338 mt); India, 13,909 mt (5,775 mt); the UK, 12,412 mt (1,994 mt); and Rotterdam, 11,545 mt (8,765 mt).
In May, exports were 65,604 mt vs. 49,331 mt for May 2012. In May, the major exporting companies were: Xiamen ITG, 7,853 mt vs. 6,932 mt in April 2013, Dow Corning (Dalian) Trading, 3,120 mt vs. 3,900 mt, Wacker Chemical (Shanghai), 2,500 mt vs. 1,650 mt and Heilongjiang Xuguang Trade, 2,276 mt.
After the Canadian Trade Tribunal said there was a reasonable indication that Chinese silicon was dumped into Canada, the case now moves to the Canadian Border Services Agency (CBSA) that will determine preliminary dumping margins and/or subsidy rates. The CBSA was expected to issue its preliminary determination on July 22, 2013 and its final determination on Oct. 21, 2013.