SHANGHAI, Jun. 12 (SMM) – It is now a high-water season in Sichuan and Yunnan, but production at silicon metal producers in the two regions is low. Why?
Overall production rate at Yunnan’s silicon metal producers is around 23% in May, and in Sichuan’s Liangzhou, a major producing region of silicon metal in the province, only 6 -7 producers are online, with low rate, SMM survey finds.
“Sluggish prices and the stalemate in power tariff talks have delayed production resumption in Sichuan and Yunnan,” SMM says.
In past years, silicon metal producers in the two regions usually return to production during the high-water period following the implementation of preferential power price, but this year, the talks have come to a stalemate, SMM explains.
The relatively dry conditions in a traditionally high-water season in southwest China is also blamed for low production there, SMM adds.
Production at silicon metal producers in Sichuan and Yunnan are not expected to improve until late June, SMM foresees.
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