Operating Rates of Silicon Enterprises in Three Regions Declined Simultaneously, Sichuan Reached a New Low [SMM Weekly Survey on Silicon Metal]

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According to market feedback estimated by SMM, the weekly production of Xinjiang sample silicon enterprises (accounting for 76% of capacity) was 27,800 mt, with a weekly operating rate of 57%, slightly down WoW. During the week, leading silicon enterprises within the sample further cut production, driving the weekly production of Xinjiang sample silicon enterprises lower. Currently, other small factories in Xinjiang maintain basically stable operations, but most have reported plans for maintenance in the future, which requires further follow-up to confirm. Due to downstream order releases this week, the inventory of silicon enterprises within the sample slightly declined.

The weekly production of Yunnan sample silicon enterprises (accounting for 30% of capacity) was 3,640 mt, with a weekly operating rate of 43%, slightly down WoW. Sample silicon enterprises are expected to implement production cuts by the end of 2024, which contributed to the slight decline in this week's operating rate. Currently, only a few silicon enterprises in Yunnan are in operation, with some indicating expectations of furnace shutdowns next week. The operating rate in Yunnan may see slight downside room in the future. Due to feedback from silicon enterprises that downstream inquiries and purchases were average this week and silicon prices remained sluggish, overall order signing was not ideal.

The weekly production of Sichuan sample silicon enterprises (accounting for 32% of capacity) was 440 mt, with a weekly operating rate of 7%, slightly down WoW. Only a few silicon enterprises within the sample are persisting in production. Currently, most operating silicon enterprises in Sichuan are those with downstream supporting enterprises, and the local operating rate has dropped to its lowest level in recent years. As most silicon enterprises in Sichuan have ceased production, they are primarily focused on clearing inventory, with a relatively low willingness to sell at discounted prices. Overall inventory levels have remained relatively unchanged.

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