A Japanese secondary aluminium mill based in Osaka city has set the prices of silicon metal for delivery in the first quarter of 2007 at $1,160-1,190/mt, delivered, a source at the company said on Monday. The Q1 metal price has risen by $80-100/mt from the current quarter, the source said. His company sources silicon metal from local trading companies, chosen through a tender that is held on a quarterly basis. The tender for the Q1 2007 supply was held last week.
The company operates three secondary aluminium production plants in Japan with a combined output capacity of 100,000 mt/month.
Trading houses awarded with the tender procures silicon metal from China mostly on a spot basis. Spot silicon metal prices traded below $1,160/mt in November according to Platts' assessments. The prices, however, have risen to $1,150-1,230/mt last week, and some see bullish prices going forward on the back of possible tax hikes in China in 2007.
The Q1 2007 tender price suggests that Japanese trading houses that have stocked the material before the prices rising to $1,230/mt may generate profit, while those starting to procure from China in December may suffer losses.
豫公网安备41010502003434号