BEIJING (Asian Metal) 10 Nov 20 - Shinko Chemical Co., a major Japanese high purity selenium powder 99.99-99.999% producer, plans to reduce its high purity selenium powder 99.99-99.999% output by 50% to about one ton in December 2020.

"We would produce around two tons of high purity selenium powder 99.99-99.999% this month, without much change MOM. However, depressed by the softened demand, we plan to reduce the output to only about one ton in December," said a source from the company.

Founded in 1938, Shinko Chemical Co. owns an annual production capacity of 60t of high purity selenium powder 99.99-99.999% and mainly distributes its products to Japanese buyers. Depressed by the poor demand, the company's outputs in 2019 and so far in 2020 recorded only about 25t and 17t respectively. It owns an inventory of around three tons now, in line with early October.

The Japanese high purity selenium powder 99.99-99.999% market witnessed slow buying activities over the past week due to the consumers' wait-and-see attitudes. Mainstream prices of the material decline to JPY7,230-7,750/kg (USD70-75/kg) at Japanese ports now, down by around JPY200/kg (USD2/kg) from one week ago. Sellers have difficulties in concluding deals. In view of the weak demand, insiders forecast that high purity selenium powder 99.99-99.999% prices in Japan would keep moving down in the coming week.