Industrial Silicon Metal Output in China to Fall in May

SHANGHAI, May 9 (SMM) - According to SMM research, Chinese industrial silicon metal output stood at 291,200 mt in April, down 22,000 mt or 6.9% MoM and 15,000 mt or 5.5% YoY. The output totalled 1.16 million mt in the first four months of 2023, up 13% year-on-year.

Some industrial silicon metal enterprises carried out maintenance either because of the sluggish market or equipment failure. The output in Yunnan, Xinjiang, Fujian, Shaanxi and other places decreased to varying degrees, with around 5,000 mt of industrial silicon metal being cut by companies in Xinjiang and Yunnan. The output in Xinjiang ranked first in April since the average operating rate of the leading enterprises stood at around 58%, even though some companies carried out maintenance, and that in Yunnan took second place, followed by the output in Inner Mongolia.

In May, the operating rates of companies in Yunnan are expected to drop as some enterprises plan to reduce production in the first twenty days of the month. In Fujian and Chongqing, companies that suspended production in mid-to-late April will stick to their production cut plans. In Sichuan, the local hydropower supply has returned to normal since late April when the dry season came to an end, but the raw material prices fell more slowly than the industrial silicon metal prices, discouraging the silicon metal producers' willingness to resume operation. SMM believes that the industrial silicon metal companies in Sichuan may resume their work at the end of May under the condition that the local power supply is on the average level, and these spots will flow into the market in June. The industrial silicon metal output will decrease slightly month-on-month in May and will be lower than the level of the same period last year.