SMM data shows that China's industrial silicon metal output was 313,900 mt in March, an increase of 32,900 mt or 11.7% month on month and 19.9% year on year. From January to March 2023, the cumulative industrial silicon metal output was 868,700 mt, an increase of 15.9% year on year.
The noticeable growth in industrial silicon production in March was due to more production days than in February. The production capacity in Xinjiang and Inner Mongolia was the major contributor to the output increase. According to SMM data, the month-on-month increase in Xinjiang was nearly 30,000 mt, and that in Inner Mongolia was 5,000 mt. The resumption of a small amount of production capacity in Hunan in March also contributed to the increase in output. In March, the spot prices of industrial silicon fell at an accelerated pace, and the cost pressure on silicon metal enterprises increased sharply. An increasing number of plants in Sichuan and Yunnan incurred losses and thus cut output in March by some 9,000 mt.
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