China Silicon Metal Industry Affected by Trade Disputes

 

The Canada Border Services Agency recently launched anti-dumping and anti-subsidy investigations on silicon metal imports from China. According to SMM statistics, nearly 3% of China’s silicon metal exports, or 13,334 mt, were sent to Canada in 2012, with monthly average at some 1,000 mt. Although this number was well below that of Japan and South Korea, these exports were vital for China’s silicon metal producers given the limited demand market and shrinking overseas demand. 

 

Canada’s investigations may lead to a decline in China’s silicon metal exports and promote consolidation of China’s silicon metal industry. The anti-dumping duty is imposed on China’s silicon metal, export prices will be driven up, leaving Chinese producers less competitive. In this context, overseas sales are bound to fall. Thus, China’s silicon metal industry will see accelerated consolidation against waning demand both at home and abroad and overcapacity.