SHANGHAI, May 20 (SMM) – Silicon plants in Dehong, Yunnan province, one of the major silicon production areas in China, will likely be forced to postpone their resumption ahead of the rainy season due to insufficient power supply. 

The power supply in Dehong would only be able to support production of five more submerged-arc furnaces by June 1, based on estimates of the Dehong Power Supply Bureau. However, SMM learned from the Yunnan Dehong Silicon Smelting Association that 32 submerged-arc furnaces among the total 62 furnaces in Dehong were originally scheduled to restart production in early-June. 

Silicon mills in Nujiang of Yunnan have mostly resumed production as the rainy season there came earlier than rest of the province. 

For the rest of the province, the preferential electricity prices for the rainy season will be implemented in June. But most silicon producers do not plan to restart work right after the reduction in electricity prices, as some may not be able to finish the installation of desulphurisation equipment following the impact of coronavirus pandemic. 

Pessimistic prospects for prices and near-term demand also depressed their willingness to resume production soon.

SMM assessed prices of oxidised 553# silicon in Kunming, Yunnan at 10,600-10,700 yuan/mt (ex-work, including taxes) as of May 19, holding flat for more than a week. 

Prices of 3303# silicon in Kunming stood at 11,000-11,200 yuan/mt (ex-work, including taxes) as of May 19, down 100 yuan/mt from a week ago. The prices were at the lowest level in more than eight months.