SHANGHAI, Dec 11 (SMM) – Operating rates across Chinese producers of silicon metal fell by 5 percentage points on the month and by 10.4 percentage points on the year to 40.2% in November, a SMM survey showed.
Most silicon plants in Dehong, Lincang of Yunnan and in Liangshan, Ya’an of Sichuan have shut amid dry season in these key production provinces in November. Some plants in Baoshan, Nujiang of Yunnan and Leshan, Aba of Sichuan were in operations to fulfill their long-term contracts.
SMM data indicated that the operating rates in Yunnan and Sichuan averaged 40.8% and 27.1% in November, down 9.9 and 7.9 percentage points respectively, from a year ago.
Small and medium-scale silicon plants in north China’s Xinjiang ramped up production in November on the back of hydropower advantages while producers in the south cut production in the dry season. But the average operating rate in Xinjiang rose 1 percentage point on the month, capped by production cut at a local major mill.
The rates in other production areas, including Fujian, Hunan and Shaanxi, saw greater increases as the silicon price rally in October lifted profit margins at producers.
SMM expects the operating rates across China’s silicon plants to continue to decline to 36.9% in December.
According to SMM data, domestic production of silicon metal stood at 194,000 mt in November, down 19.9%% on the year.
Output in the first 11 months of the year amounted to 2.06 million mt, down 18.9% from the same period a year earlier, 0.1 percentage point wider than the decline seen in January to October.
Production for the full year is expected to shrink nearly 440,000 mt from 2018.
