In modern industry, Silicon Metal (industrial silicon ) has become the cornerstone of silicone, polysilicon, and aluminum alloy production with its varied forms and indispensable role. There are many types of industrial silicon metal. According to the different smelting raw materials and production equipment, there are seveal types of silicon: primary silicon, recycle silicon metal 97, etc. According to the impurities such as iron, aluminum, and calcium, there are models like Silicon 553, Silicon 441. These grades not only represent the specifications of the products but also reflect the upper limit of the impurity content . For example, the numbers in Si 553 indicate that the upper limits of iron, aluminum, and calcium content are 0.50%, 0.50%, and 0.30% respectively. Silicon Metal Futures Trading are based on Silicon Metal 553 and are also open to other silicon models.
Last year, China’s metal silicon production capacity and output accounted for 79% and 78% of the world respectively. Total industrial silicon consumption was 3.132 million tons (including exports). However, its market price has not yet formed a unified national open market. This price fragmentation not only affects the maturity of the domestic market but also weakens our pricing voice in the global metal silicon market. It makes the entire industry, although huge, lack sufficient strength. In the context of such high supply and high demand, the launch of industrial silicon metal futures trading will help stabilize and improve the supply of industrial silicon. Also, it will enhance the resilience of the industrial chain, and give China silicon metal suppliers more bargaining power in the market.
Silicon Metal Futures Trading Market
Silicon metal futures trading will be listed and on the Guangzhou Futures Exchange on December 22, 2022. Industrial silicon futures contracts will also be on the Guangzhou Futures Exchange. Metal silicon futures refer to futures contracts with industrial silicon as the underlying. The trading unit is 5 tons per share. The minimum price change is 5 RMB/Ton. The trading time is the normal working hours specified by the futures exchange from Monday to Friday. The delivery method is physical, and delivery is made at the delivery warehouse designated by the exchange.
The listing of silicon futures serves real enterprises and giving full play to discovering prices, hedging, and allocating resources. Industrial silicon futures provide the market with a risk management tool. On the one hand, the process of falling industrial silicon prices, through hedging, helps silicon metal manufacturers in China to manage the risk of falling prices. On the other hand, silicon metal futures provide a reliable guarantee for green development. It can not only manage raw material costs in advance but also improve the efficiency of capital use. In addition, it is also conducive to the collection of global information, trade, and capital flows. In all, it is conducive to our voice and initiative in the allocation of global green financial resources.