SHANGHAI, Jun. 9 (SMM) – The latest SMM survey shows that the average operating rate at China’s silicon metal producers was 36.68% in May, with both operating rates and output up significantly from April’s levels.
Silicon metal producers in south China typically restart production in April. This year, however, the anemic silicon metal market left most industry insiders bearish to market outlook. Thus, most producers hesitated to resume production in April. However, local power authorities in south China announced electricity adjustments in May, and electricity prices Sichuan and Yunnan should be lowered in June, encouraging many producers to restart operation. SMM survey shows that the average operating rate at silicon metal producers climbed 16.29% MoM in May, and Yunnan province also reported a 7.22% increase in operating rate. Most producers in Dehong of Yunnan province resumed production on June 1. SMM expects the average operating rate in Yunnan to surge in June as a majority of silicon metal producers in the province are located in Dehong.
The SMM survey covers 120 silicon metal producers, with total capacity hitting 3.21 million mt/yr, representing 80% of China’s total capacity. Domestic silicon metal output was about 98,100 mt, with metallurgical-grade silicon metal output of 44,100 mt, and chemical-grade silicon metal output of 54,000 mt.