繁體中文 
简体中文 
Español 
English 
Introduction
When the LME cannot reflect silicon metal prices, aluminum die casting plants and secondary aluminum sellers must monitor alternative signals to understand market trends and avoid procurement decisions being dragged down by price mismatches. While traditional metals like copper, aluminum, and zinc often use the London Metal Exchange (LME) as a benchmark, silicon metal is not traded on the LME, so the following signals are crucial:
Signal 1: SMM / Shanghai Metals Market Spot Price Trends
SMM’s real-time quotes are the most accurate reference for silicon metal prices, such as daily updates for grades 441 and 553. You can track abnormal price fluctuations on their official site. These prices reflect supply-demand realities better than the LME, making them vital for aluminum buyers.
Signal 2: Shanghai and Inland Export Port Yard Activity
Port inventory levels are a direct indicator of supply tightness. In late 2023, multiple ports experienced overstock, causing short-term price rebounds. If inventories fall or export scheduling intensifies, delivery pressure will rise, pushing SMM prices higher even without LME movement.
Signal 3: New Capacity and Production Restriction Policy Changes
China’s silicon metal industry is heavily affected by power limits and environmental production restrictions. In early 2024, provinces such as Sichuan and Ningxia issued staggered capacity control orders, temporarily reducing supply. These events may not show up immediately on the LME but can still shake market prices.
3 Procurement Strategy Recommendations
| Procurement Factor | Recommendation |
|---|---|
| Abnormal Price Fluctuations | Compare SMM short-term and monthly average prices and review port inventory reports |
| Delivery Delays & Supply Risks | Maintain a “main + spot backup” dual-supplier system |
| Capacity Policy Changes | Include contract clauses: if production is restricted, delayed delivery should result in price reduction or replenishment |
🔗 Professional Tools & Resources
- 📡 SMM Silicon Metal Real-Time Prices (DoFollow): SMM Silicon Prices
- 📊 Capacity reports and environmental policy updates: refer to MIIT announcements and local environmental bureau websites
FAQ – Key Questions from Industry Experts
Q1: Why not just use the LME as a cost reference?
A: The LME does not list silicon metal. While copper and aluminum trends can offer general insights, they are disconnected from supply chain realities and cannot reflect logistics or documentation factors.
Q2: Can SMM prices predict market trends in the coming weeks?
A: If spot prices rise more than 3% for three consecutive days, it usually indicates short-term supply tightness and the need to secure stock quickly.
Q3: Should export schedules be monitored regularly?
A: Yes. Review port batch reports and export data monthly to guard against supply concentration or power restriction risks.
Conclusion
When the LME can’t reflect silicon metal prices, the real indicators to watch are supply-demand and logistics signals. By tracking SMM quotes, port yard activity, and policy changes, you can better manage price risks and delivery schedules to support procurement decisions.
