Road transport capacity grows freight charges of silicon products in Aug

SHANGHAI, Sep 3 (SMM) – Costs for shipping silicon products by road grew in August as road transport capacity was insufficient during the agricultural harvest season, SMM research found.

Transportation of fruits and vegetables by road is not subjected to tolls, and this clogged up road capacity in the high season.

Road transport fees from Baoshan, Dehong and Nujiang to Kunming remained stable with sufficient vehicles in Yunnan province. Limited vehicles can move silicon products from Kunming to Guangdong province and transport fees for this route began to climb from the start of August. As of August 29, the costs for shipping silicon products from Kunming to Guangzhou rose some 10% from a month ago to stand at 320-330 yuan/mt, tax excluded.

Some traders chose rail freight on costs concern, which would double the shipping duration. It takes about three days to move from Kunming to Guangzhou by road, compared to six to seven days by rail.

Costs for shipping from Liangshan, the major production area of silicon without oxygen refining in Sichuan province, also went up. It was priced at 420 yuan/mt to Guangdong and 430 yuan/mt to Jiangsu as of August 29, both up some 10% from a month earlier. Prices exclude tax.

Shipments from Xinjiang also saw increases in freight charges. However, those increases are likely to sustain or extend while the shortage of road transport capacity in other areas is expected to ease in late September when the harvest season ends.

Snow is common during the winter in Xinjiang, which is set to hamper transportation and grow freight costs from late October. Some silicon consumers that purchase raw materials from Xinjiang would begin to stockpile before or after the week-long National Day, for the upcoming winter.