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India sees ~10% monthly drop in silicon metal imports; Shipments from China falls by 15% in May'24

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Aluminium
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11 Jul 2024, 18:03 IST
India sees ~10% monthly drop in silicon metal imports; Shipments from China falls by 15% in May'24

In May 2024, silicon metal imports into India declined by 7% to 7,400 tonnes (t) from 8,000 t in April 2024. However, imports remained consistent compared to the previous year, according to BigMint data.

During the same period, imports from China to India saw a significant m-o-m drop of about 15%. China is a major supplier, accounting for approximately 90% of India's silicon metal imports. Globally, China leads as the largest producer of silicon metal, exporting over 50% of its production worldwide.

Silicon metal plays a critical role in producing aluminium alloy ingots particularly ADC12 ingots, essential in automotive and manufacturing sectors. It enhances strength, hardness, and castability when combined with metals such as copper and magnesium, typically comprising 9.6% to 12% silicon content.

The presence of silicon improves the properties of ADC12 alloy, enhancing durability and suitability for demanding applications. Its ability to be cast easily allows for the creation of intricate shapes. Notably, a significant majority of silicon importers are facilities involved in alloy ingot manufacturing, comprising approximately 50-70%.

China's silicon metal market

In May, China's industrial silicon metal output surged to 299,000 t, up 8% m-o-m and 60% y-o-y, driven by increased production capacity in Xinjiang and Sichuan. Output in Yunnan slightly declined due to plant maintenance and delays in resumption.

China is home to around 220 industrial silicon metal production firms, mainly located in Yunnan, Sichuan, Xinjiang, Hunan, and Fujian, with Yunnan and Sichuan accounting for nearly half of the national total. The industry is dominated by small and medium-sized enterprises, with more than 90% producing less than 10,000 t annually, indicating a decentralized industry structure.

China exports a significant portion of its industrial silicon through Tianjin Port and Huangpu Port, with 553 and 421 variants as the primary products.

Increased demand from key markets like the UAE, India, the Netherlands, and Japan has notably boosted China's silicon metal exports.

Silicon metal pricing and sea freight impacts

As per BigMint's assessment, There was a 5% rise in domestic silicon metal prices on a m-o-m basis, increasing from $1,865/t in April 2024 to $1,958/t in May 2024.

In late June, due to higher freight rates, China's silicon 553 prices reached $2,000/t CFR Mundra. China's metal silicon exports to India totaled about 7,920 t in April but declined in May, with further anticipated decreases in June. The May drop was due to existing stocks held by Indian alloy manufacturers, and the June decline is expected as freight costs escalate.

Sea freight rates from China to Mundra were $800-$1,000 per 20ft container in April 2024, surging to $3,800-$4,000 per 20ft container by June, and currently stand at $3,400-$3,600 per 20ft container.

Port-wise imports

The major ports of material inflow for silicon metal are Chennai, which showed a 15% increase on a m-o-m basis to 1,700 t in May 2024, followed by JNPT with a 13% increase to 1,600 t, and Kolkata with a sudden increase of more than 200% to 1,100 t in May 2024 compared to 328 t in April 2024. Inflow through other ports accounted for 3,000 t.

Country Wise

In May 2024, China maintained its position as the largest exporter of silicon metal, bringing in 6,400 t. Malaysia experienced a notable increase, exporting 800 t, while Brazil tripled its exports. Conversely, Australia decreased its exports compared to the previous month.

11 Jul 2024, 18:03 IST

 

 

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