SHANGHAI, Jun. 24 (SMM) -- A recent survey of 12 silicon metal producers (total capacity 82kt) revealed that operating rates at silicon metal producers in May at Hunan region were 79.9%, up 4.66% MoM.
When entering into June, electricity prices at companies with high energy consuming and high pollution emission were lifted up by various local governments, due to crackdown to save energy and to cut pollution emission. Some producers in Huaihua region in Hunan province even received the notice that electricity prices were lifted up to RMB 0.612/kWh, up 34.21%. Affected by high production costs by electricity price hikes, local silicon metal producers gradually halted production. In this context, silicon metal producers in Huaihua united together to exchange views with governments, in order to make electricity price adjustment stay at reasonable level.
Electricity price charges will be settled at the end of June, and the specific electricity price adjustment by the government will be revealed by then. SMM believes that more and more silicon metal producers will halt production in that region due to uncertainties from electricity price adjustment, and it is expected that operating rates in June will fall to below 70%.
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