Silicon metal highlights

摘要

Silicon metal prices have moved in line with our expectations presented last month, with prices improving in the major markets in recent weeks. Silicon metal prices are beneftting from stronger demand in the aluminium and chemical sectors, as well as continued supply constraints, in large part due to energy issues. Silicon metal prices may be nearing their peaks, however, as hydroelectric power supplies in the northern hemisphere - and China in particular - will soon be rising, with reports that power rates will begin to decline in May. As power supplies become less expensive, we expect to see silicon metal producers boost output to beneft from higher prices at present. Increased supply may erode pricing gains as the second quarter progresses.