Market participants are gathering in London this week while some minor metals with energy-intensive manufacturing processes and a reliance on China for supply have surged to multi-year highs.
The sharp price increases in the Chinese market are rapidly filtering across Europe, resulting in the depletion of silicon and magnesium inventories in Rotterdam.
"This LME Week is different, totally different, especially for certain products in which there is a big question mark such as silicon, magnesium or manganese flake," a European trader told Fastmarkets.
"The situation is very desperate," the trader said. "Prompt material is very difficult to find and there is panic everywhere; the more energy-intensive the market is, the more panic."
Power supply problems in many of China's key industrial and manufacturing hubs have worsened since September while the nation tries to meet strict carbon reduction regulations. Energy prices have set repeated multi-year highs.
Fastmarkets assessed the price of silicon grade 4-4-1 99% Si min, in-whs Rotterdam at ?,?8,500-8,650 ($9,825-9,894) per tonne on Friday October 8, up by 31.9% from ?,?6,000-7,000 per tonne week on week.
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