Hong Kong (Platts)--7Sep2007

The price of Chinese 98.5% silicon metal (553 grade) have held firm at
$1,550-1,600/mt FOB China, as prolonged supply tightness in China has
continued to hold prices firm, industry sources told Platts. 
     One China-based trader said current offers were quoted at around
$1,600/mt FOB China. "There are some offer prices which are quoted at even
higher levels at $1,620-1,635/mt FOB China, depending on the delivery date and
the quantity," the trader said. "We are now exporting about 500-600 mt/month
of spot material...the market momentum is still strong and I anticipate prices
will be gradually moving upwards due to tight supply in China." He added that
the stricter environmental restrictions set by the Chinese government to limit
silicon metal output from Chinese plants had forced some smaller production
plants to stop production. The supply tightness in China is likely to last for
some time, the trader said. 
     One Hong Kong-based trader added that offer prices in China were at
around $1,550/mt FOB China. "We have recently sold about 60 mt at $1,550/mt
FOB. Prices are still strong though we haven't seen any major changes this
week following the price surge in August," he said. Traders in China added
higher power costs in China was also a factor driving prices higher.
     The Platts FOB China silicon price for the 553 grade were at
$1,550-1,600/mt FOB China this week, unchanged from a week ago. Prices were
only at $1,400-1,440/mt in early August and $1,300-1,400/mt in July.     
     Meanwhile, traders said the current price for the 99.7% electrolytic
manganese also remained strong at $3,900-4,000/mt on a CIF basis. The Hong
Kong trader said he sold two containers at $3,900/mt CIF Rotterdam this week.
"Demand is steady and the market momentum is still strong," he said. Traders
said domestic prices for electrolytic manganese also hold their recent gains
quoting at around Yuan 22,000-22,500 ($2,917-2,984)/mt ex-plant.
     The Platts FOB 99.7% electrolytic manganese are steady at $3,800-4,000/mt
FOB China this week, unchanged from a week ago. 
--Wendy Shair, wendy_shair@platts.com