In the last week of February, silicon Metal prices showed divergent trends in China and the USA markets. While prices stayed stable in China due to low raw material costs and weak downstream activity, prices in the USA rose on the back of plant closures and rebounding demand.

During the week, the overall market activity was not significant, and the market performance was relatively stable. A significant drop in silicon coal prices was noted in the week, particularly in Ningxia and Gansu. Due to continued weakness in coking coal prices, a decrease in mine-mouth raw coal prices was observed. Persistent low purchasing from silicon metal plants coupled with weak supply and demand caused raw material prices to drop in multiple regions.

The market price of silicon 441 was temporarily stable but some grades in the silicon metal market have witnessed a fall in prices which impacted the overall market sentiment. Silicon metal grades such as 553 experienced a narrow downward trend in market conditions. On the supply side, there was slight pressure with some traders facing small scale destocking in the market. Downstream demand for silicon was mainly driven by procurement on a need basis, with average transactions and limited market support from the demand side.

ChemAnalyst predicts that in the short term, the domestic silicon metal market in China will mainly adjust and operate in a narrow range, and specific changes in supply and demand news need to be closely monitored.

In the USA, Silicon metal 553 prices witnessed marginal incline by 0.5% in the week ending Feb 28. But other grades such as 441 remained stable. The slight uptick in silicon metal prices in late February was supported by plant shutdowns of major manufacturing units.

Following severe weekend storms that caused widespread flooding in the Eastern U.S., a wave of intense cold swept across the Northern Plains. The resulting flood risks led to extended flood warnings throughout much of Kentucky and parts of Arkansas, Mississippi, Alabama, West Virginia, Virginia, and Ohio.

Major manufacturing units such as Ferroglobe PLC and Dow Corning Mt. in Alabama and Mississippi Silicon in Burnsville, Mississippi declared force majeure due to flooding and impacted silicon metal prices.

ChemAnalyst anticipates a higher silicon metal prices in the USA in the coming weeks, driven by increased demand from aluminium alloy and solar sectors. Additionally, constrained supply in the USA should also contribute to the upward price movement.