Japanese bargain hunters pressure spot silicon metal prices down

Tokyo -- Bargain hunting for Chinese-origin silicon metal in Japan pressured spot prices down to $1,520-1,550/mt CIF Japan, from $1,550-1,570/mt CIF Japan last week, local trade sources said on Thursday. This week, traders mostly in western Japan were said to have bought 98.5%-purity silicon metal from Chinese traders in small lots of 60 mt or 120 mt, at $1,520-1,550/mt CIF Japan equivalent. One Japanese trader described the move as "bargain hunters buying today to sell at higher prices to local consumers after November". Some Chinese traders are believed to be clearing their stocks before the end of the month, another Japanese trader said. Japanese traders, however, agreed that the prices have hit the bottom and are likely to rise possibly from next week. Two traders said they received fewer offers this week, which suggests that their counterparts in China have less spot material to sell. Japanese traders said they expected spot prices to hover above $1,600/mt CIF next month. Prices of silicon metal typically rise during winter months due to higher costs of power in China. In addition, some Japanese secondary aluminium smelters plan to hold buy tenders for silicon metal in the middle of November, and this may drive the market sentiment up. The tender is for contract-shipment in the first quarter of 2008.