SHANGHAI, Nov. 5 (SMM) -- Domestic silicon metal prices continued to advance. Producers adjusted production plans due to cost pressure, as the electricity prices grew constantly.
According to a latest SMM survey, operating rates at silicon metal producers in Fujian province fell to 35%, down significantly compared with mid-October level of 45%. The survey of 15 silicon producers with total capacity of 85kt/yr reveals that only 3 producers operated at full capacity, operating rates at 3 producers were 30-50%, operating rate at 1 producer was 16%, while 8 producers have suspended production (3 producers halted production within one month). Producers said they had to cut or suspend production despite of higher selling prices of silicon metal due to high electricity prices at RMB 0.53/kWh.
Limited producers were willing to move goods during this week, and SMM believes current prices have left relatively sufficient profit margins for producers. Coupled with increasing market risks, spot supply will grow continuously in the future.
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