Metals News
Fujian Cuts Electricity Prices in July
smm insight

SHANGHAI, Jul. 26 (SMM) – Merely a small number of silicon metal producers in Fujian choose to stay in operations at present owing to sluggish markets as well as relatively high electricity costs. During high-water period, as electricity supply is sufficient, Fujian local government decides to keep electricity prices unchanged at large power stations but cut prices at small power stations in some cities and counties, in a bid to stimulate producers to increase operating rates, raise the amount of electricity used in the industrial sector, and add to taxes.

A cut in electricity prices mainly refers to Sanming City and Zhangzhou City where are concentrated with silicon metal producers. According to SMM sources, Sanming City (including all counties within its jurisdiction) has slashed electricity prices by RMB 0.04-0.1/kwh based on prices RMB 0.46-0.48/kwh at small power stations, and Zhangzhou City (including all counties within its jurisdiction) has cut electricity prices by RMB 0.04-0.06/kwh based on prices RMB 0.46-0.48/kwh. The cut in electricity prices has been implemented in early July and will be end in September, namely three months.  

As of July 26, 90% of silicon metal producers have learnt standards for executing electricity prices during the high-water period.

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