SHANGHAI, Apr. 6 (SMM) – Hydro-power supply is now sufficient to production needs at silicon metal producers in Nujiang, Yunnan Province, but local producers remain offline. Why?
SMM attributes this to following factors.
First, the high-water period is arriving, but power tariff has not been adjusted accordingly, and local power plants still use the power price set for the low-water period.
Second, the market will be exposed to growing supply pressures after production resumption, and the worries add to plants’ caution when deciding to restart production or not.
In Nujiang, power tariff during the high-water period is usually adjusted from May 1st, and in 2017, the high-water period arrives earlier than expected.
At present, local silicon metal producers are under discussion with relevant governments over power price. If the adjustment time for power tariff comes earlier, local silicon metal producers will likely restart production in advance.
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