Silicon metal highlights

摘要

European silicon metal prices have consolidated gains in March as supply worries persist against a backdrop of tightening availability for prompt demand, which has seen the market rally strongly in recent months. Consumers are more or less covered for material in the first quarter, while prompt spot delivery carries a premium of 50-100 euros/tonne. There have been some offers for standard secondary aluminium-grade (98.5 percent grade) (5-5-3), with the market at 1,470-1,520 euros/tonne on a fca (free on truck) basis. Better grades of silicon metal (4-4-1) are around 1,520-1,570 euros/tonne basis DDP. Although business has been fairly low key, it is our view that market fundamentals will persist in offering firm support to prices. Long-term silicon metal contracts for this year were settled at 1,400 euros/tonne for standard (5-5-3) material, while contracts for 4-4-1 metal were settled at around 1,450 euros/tonne, both on a delivered duty paid basis.