Death, taxes, and the US penalty duty on Chinese silicon


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SIcular BuSIness
Guest
SIcular BuSIness

Then of course there is the frequent importing or relabeled or “baptized” Chinese Si coming in from wherever…There are many reasons Si metal levels have dropped to their current lows: currency devaluation, dropping costs (carbon products, etc.), new legitimate producers in the market, the Brazilians missing the boat on long term contracts in 2016 due to national level issues, and difficult secondary Al market and consolidated and shrinking primary Al market are chief among these reasons, – these Al industry folks have their own problems with Chinese material skirting duties – See: Zhongwang, Aluminicaste. http://www.wsj.com/articles/new-jersey-factory-linked-to-chinese-aluminum-probe-1473963640 That being said, I have… Read more »

alanpatrickryan
Guest

I really don’t know what to make of the Brazilian energy crisis and the effect on silicon. When it hit, last year the standard line was that shipments to the US would fall. However, they rose compared to 2014. And not one Brazilian producer declared force majeure on any contracted shipments. Why not, the US is a premium market and two, long-term contracts are hard won and not easily given up. As for illegal Chinese exports to the US, there will always be some, but usually those are small compared to imports from other countries. The importer know that exporting… Read more »

SIcular BuSIness
Guest
SIcular BuSIness

Re: Silicon – Brazilians did not take long term contracts for 2016 based on what they thought was happening for most of 2015. By the time the fall rolled around and most of them had secured new power deals and the currency was at 4.xx BRL:USD, they needed to start making sales. They undercut the market consistently throughout the year, beginning in November 2015, right up until the present moment. We now find that the USA is not that much of a premium market, especially for 3303 and other premium grades, when all things are considered.

alanpatrickryan
Guest

Thank you for your knowledgeable comment. I just got my US import statistics some of which I will share with you now. Total imports of 99-99.99% Si through August were 89,442 mt and the average monthly average was 11,180 mt vs. 10,828 mt. August imports were 12,819 mt, the highest for the year. The monthly 2016 average vs. (the average 2015 averaged) for selected importers were: Canada, 1,689 mt (382 mt); Brazil, 4,090 mt (3,498 mt); Norway, 578 mt (713 mt); Kazakhstan, 742 mt (155); Australia, 1,511 mt (1,439 mt) and South Africa, 2,056 mt (3,221 mt). I don’t think… Read more »