According to SMM data, silicon metal production in July was 388,000 mt, up 8.3% MoM and up 14.7% YoY. Cumulative silicon metal production in January-July 2026 was 2.3783 million mt, up 8% YoY.
The MoM increase in silicon metal production in July was mainly due to production resumptions at some silicon enterprises in Sichuan and Yunnan during the rainy season, while a few silicon enterprises in Inner Mongolia also resumed production, contributing to a MoM increase in monthly output. This drove a higher nationwide operating rate, though production in Sichuan and Yunnan remained below the level seen in the same period last year, with operating rates showing a downward trend over the past two years.
The silicon metal market remained sluggish, with silicon metal futures prices consolidating below 8,400 yuan/mt for an extended period. Coupled with rising power costs in August in some areas of Sichuan and Gansu, production pressure on silicon enterprises continued to mount. In late July and August, news of production cuts emerged frequently, leading to downward expectations for output. Silicon metal production in August is expected to drop to around 350,000 mt MoM, a decline of 9%. As the supply-side production cuts ease the supply-demand relationship, industry sentiment is stabilizing with a tentative upward bias.
