SMM, Oct. 10: September SMM survey metal silicon industry operating rate of 45.1%, an increase of 2.8 percentage points month-on-month, down 10.9 percentage points from the same period last year.
In Xinjiang, Yunnan, Inner Mongolia, Qinghai and other regions, the supply of some maintenance capacity increased month-on-month in September. In addition, the recovery of low-grade silicon prices attracted the restart of individual silicon plants in Guangxi, Guizhou, Chongqing, and other places. Two silicon plants in Fujian have also increased their unfinished operation rate due to long orders.
The electricity price of Shihezi large network in Xinjiang was raised in August, Jierong silicon industry was reduced from two furnaces to one, Jingxin silicon industry completely stopped production in August due to rising electricity prices, and the annual output in 2019 is expected to drop by 25000 tons compared with the same period last year. Hesheng silicon industry, which uses a small amount of large network electricity, stopped production in August, Shanshan branch plant increased the starting load as a supplement, the overall supply is basically stable.
The Nujiang River in Yunnan Province entered a dry season in November, and the local silicon plant will gradually reduce the starting load in November. Dehong, due to the sharp increase in electricity consumption of virtual currency mining machines compared with the same period last year and less rainfall, may have a shortage of power supply in late October. According to the local power supply bureau, it is expected that it can only meet the production of more than 20 silicon furnaces in the prefecture, and the number of furnaces is nearly half lower than the level of 48 at the beginning of October, and the implementation time of electricity prices in the dry season has been advanced to November, one month earlier than in previous years.
At the end of October, Liangshan, Yaan and Leshan in Sichuan will enter a flat period, and electricity prices are expected to rise by 0.06-0.09 yuan / 10 million hours. based on the current market conditions, it is difficult for most silicon plants to make profits after electricity prices rise, and large-scale production cuts are expected at that time.
The operating rate of silicon companies is expected to fall slightly to around 44.7 per cent in October.
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