Rapid Capacity Expansion in North China Shifted Silicon Metal Market into Surplus 

SHANGHAI, Mar 24 (SMM) – The pandemic hit downstream aluminum alloy and silicone sectors, as well as silicon metal exports to varying degrees last year, while silicon metal plants were less affected as they were mostly located in south-west and north-west China. With the release of new capacity from Xinjiang Hoshine, Inner Mongolia Xinyuan, and small plants in north-west China at the end of 2022, the domestic silicon metal supply gradually shifted to a surplus. According to SMM data, China’s silicon metal output totalled 3.5 million mt in 2022, up 20% year-on-year (YoY), and the market was oversupplied by more than 300,000 mt.