SHANGHAI, Mar 6 (SMM) – Higher electricity charges drove silicon producers in the Seventy-three Group, Yili Autonomous Prefecture of Xinjiang to cut production and only maintain operation of one or two furnaces from the end of February. 

SMM learned that the area planned to raise electricity prices by 0.02 yuan/kWh. Electricity fees currently stand at 0.3 yuan/kWh.

As of Wednesday March 6, five silicon producers in the area are still negotiating with the government. A final electricity price will be announced in a week or two.

SMM expects some local silicon mills to close if electricity prices increase as scheduled.