SMM7 News of the 8th of July:
In June, the start-up rate of the metal silicon industry surveyed by SMM was 34.4 percent, an increase of 1.7 percentage points from the previous month, and a decrease of 12.7 percentage points from the same period last year.
The construction starts in the main producing areas Xinjiang, Yunnan and Sichuan have all increased compared with the previous month, while the production in Fujian, another major producing area, has been reduced since late June due to the expiration of preferential electricity prices.
The ore problem of a large factory in Xinjiang has been basically solved. On June 20, the number of ore heaters in the old factory was increased from 24 to 40, and at the later stage, it is planned to increase to 42, and 2 in Shanshan new plant, which are scheduled to open to 10 in early July and basically return to the pre-production supply level by the middle of July.
After more than a month of delay in the rainy season in Yunnan, Dehong, Baoshan and Nujiang basically returned to the normal level of start-up during the flood season, while there was no continuous rainfall in Lincang and other places, and the opening of local silicon plants was still on the low side compared with the same period last year. The opening rate of the Yunnan silicon plant returned to 47.5% in June and is expected to rise to around 65.9% after production is fully normal in July.
The drought situation in Sichuan has not been completely alleviated, and silicon plants in some districts and counties were still unable to start operation due to lack of electricity in early July. The province's start-up rate rose only 6.4 percentage points to 33.6% in June.
The preferential electricity price for the abandoned water period in Fujian ended at the end of June, and the electricity price in the whole province rose sharply to 0.50.58 yuan / kWh in July. All but a few factories with long orders or local subsidies are still in production. The new electricity price policy will be announced at the end of July, when a small number of silicon plants will resume production if electricity prices are cut.
The national silicon start-up rate is expected to rise to around 41% in July.
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