Plentiful supply and insufficient cost support to keep silicon metal prices in check

Most obvious volatility of costs in November-December in the southwest region will be felt from impact of two things. One thing will be rising electricity prices during the normal-water period and dry season. The other thing will be that the border conflict in Myanmar will block imported charcoal’s port access, significantly pushing up charcoal prices. On the supply side, production losses in the southwest are expected due to reduced power supply and weaker furnace conditions, while production increases are expected in the northwest due to startup of leading enterprises and newly added capacity. On the demand side, downstream demand will be stable in the near future. Overall, silicon spot circulation will be relatively abundant. Short-term cost support will be limited. It is expected that silicon prices will mainly fluctuate at a low level on the near-term horizon.