Silicon metal highlights

摘要

US spot buying has been fairly active through November as some consumers used their contract deliveries faster than expected, while recent tariffs introduced in Canada on Chinese silicon metal have also increased spot supplies. We believe cheaper supply is harder to get given tight availability as most producers are well sold. The current trade action appears to have deterred Chinese material from going to Canada, and therefore more US metal is being attracted into Canada, which may mean less spot availability in the USA. In Europe, November business has been a bit more active than in October and should be supported through December as there are positive signs for the New Year. There is consumer interest for delivery through the first quarter, with contracts settled for delivery as late as March, signalling firming consumer sentiment that prices may increase in the coming months. In China, we expect silicon metal prices to be supported on steady demand from the Chinese aluminium sector and chemical industry, as well as rising power costs.