Arsenic metal markets in China and the United States are experiencing downward price movements amid cautious industrial demand. Post-holiday restocking in China revealed subdued order volumes in battery and semiconductor sectors while manufacturers adjusted production strategies. Prices in the USA reflected a similar trend as freight rates continue to decrease and uncertainty over the CHIPS act persists.

The price of Arsenic metal in Chinese markets continued to fluctuate downwards with a price change of 0.8% observed in the month of February. Downstream order demand is still relatively small as compared to January and traders are not very enthusiastic about taking new goods. Some purchases of arsenic metal were noted in the market, but only for small orders.

In the following weeks after the Chinese New Year holiday, arsenic metal demand from the lead-acid battery industries remained cautious. The performance of the lead-acid battery market for e-bikes and automobiles has been mediocre post the holiday season. Dealers have noticed a relative decline in new orders within a week after finishing the traditional restocking after the Chinese New Year. Similarly, semiconductor industries been more careful in their procurement of arsenic metal, concentrating primarily on just-in-time procurement.

As the traditional off-season nears, battery selling prices are exhibiting a downward trend, prompting dealers to exercise caution in their purchasing decisions, with numerous enterprises adjusting production in accordance with sales figures. This has resulted in a drop in demand for arsenic metal from this sector.

Arsenic Metal prices in the USA also witnessed a similar trend. Prices dropped by 0.7% m-o-m. A drop in demand for chips from industrial and automotive customers led to a decrease in demand for arsenic metal. Additionally, declining freight rates throughout February also contributed to the cause. Freight rates from Shanghai to Los Angeles decreased approximately 27% and those from Shanghai to New York declined 26% per 40ft container.

The semiconductor sector in the USA faces uncertainty as discussions continue to repeal the CHIPS and Science act. Without financial backing from the CHIPS act, major industrial players might reconsider building or expanding domestic facilities. Among major semiconductor giants, NXP Semiconductors has forecasted its first quarter revenue below market estimates in a sign of sluggish demand.

The uncertainty in the semiconductor sector and the potential rollback of supportive policies can lead to reduced semiconductor production. This, in turn can lower the demand for essential materials like arsenic metal and can put downward pressure on its prices in the coming months.