Metals News
[Minor Metal] Yunnan Lowers Power Price, Silicon Producers Reflect Mildly
industry news
Dec 7,2009

SHANGHAI, Dec. 4 (CBI China) – Yunnan Province lowered power price to stimulate production, down RMB 0.06/mt from normal level, but most silicon producers said they were still under great pressure and the operation rate remained low.

    A producer in Yunnan said, “the price we are enjoying now after the adjustment is RMB 0.31/mt, but we are still facing heavy pressure. Demand is so bad and we made few deals.” Only one smelting furnace out of its total three furnaces is keeping running for the time being.

    Another producer in Yunnan expressed, power price bidding may not be executed this year, and the government even encourages producer to operate as power supply is abundant. However, market price is too low for silicon producers to make profit, it is too risky for them to operate now.

    A trader in Yunnan told us, the delivered price of Silicon 2202 in Kunming had fallen to RMB 10,500/mt, they received a few tentative inquiries from buyers but no transaction during past two weeks.

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