Chinese aluminum alloy sector 2017 silicon demand to rise 6%

Silicon metal demand by the mainland Chinese aluminum alloy sector in 2017 is forecast to rise 6% year on year to 435,000, on stronger demand from the domestic reformed aluminum alloy and diecast aluminum alloy sectors, the silicon branch of China Nonferrous Metals Industry Association said in a report in its website Friday.

The domestic reformed aluminum alloy and diecast aluminum alloy sectors are forecast to use silicon metal estimated to be 125,000 mt and 310,000 mt, respectively, in 2017.

Silicon demand by the domestic aluminum alloy sector is forecast to keep growing in the 2018-20 period, on anticipated continual demand support by the Chinese reformed aluminum and diecast aluminum sectors.

China's aluminum alloy sector is forecast to use 460,000 mt and 484,000 mt silicon metal in 2018 and 2019, respectively.

It forecast the reformed aluminum alloy sector would use 135,000 mt and 145,000 mt of silicon metal, respectively, in 2018 and 2019, wile the diecast aluminum alloy sector, to consume 325,000 mt and 339,000 mt silicon metal in 2018 and 2019.

Meanwhile, this week, most of the Chinese silicon metal trading was concentrated in Yunnan Province, Central China, the country's biggest silicon base, with provincial silicon output capacity of 1.2 million mt/year, CNIA said in its silicon sector report issued Friday.

The association said trade was thinner this week than last as deals for September between producers and the downstream sector clients had already been signed in early September. It said most of the producers' trade this week was done in Yunnan, thus cutting prices in the province.

Spot prices for 553 silicon metal in Kunming Port, Yunnan were at Yuan 13,100-14,200/mt ($1,965-$2,130/mt) this week, down from Yuan 14,100-14,600/mt last week, while prices for main stream 553 silicon at Tianjin Port, North China were at Yuan 14,500-15,500/mt ($2,175-$2,325) this week, down from Yuan 15,500-15,900/mt last week, data from CNIA showed.