[Minor metal] Operation Rates at Silicon Metal Producers in Yunnan Province Slip to 70%

SHANGHAI, Nov. 6 (SMM) -- Although the electricity price was RMB 0.3-0.31/kWh in Yunnan province, the power supply control policy during the low-water period caused power supply shortage, and silicon metal producers had to cut or suspend production as a result.

    According to a latest SMM survey, operating rates at silicon metal producers in Yunnan province fell to 70% from mid-October level of 85%. The survey of 23 silicon metal producers with total capacity of 270kt/yr reveals that 14 producers operated at full capacity, operating rates at 2 producers were 50-75%, while the remaining 7 producers have suspended production (5 producers halted production in late October or early November). However, another 3 producers planed to stop production in late November.

    Main products at local silicon producers are high-grade # 3303 and # 2202 silicon in Yunnan province, and prices for # 3303 and # 2202 silicon have been as high as RMB 12,000/mt and RMB 13,500/mt currently as local producers only produced based on existing orders.

    SMM believes silicon output decreased due to the onset of low-water period, helping support current silicon prices. In this context, domestic silicon prices will continue to advance in the short term.

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