Silicon plants postponed resumption on falling prices and less rainfall

SHANGHAI, Apr 1 (SMM) – Silicon producers in south-west China’s provinces Yunnan and Sichuan, major production areas of silicon in China, planned to delay their resumption due to the recent sharp declines in silicon prices as the coronavirus pandemic dampened overseas demand. 

Reduced rainfall compared with the previous year has led to drought in some regions, which suggests that the rainy season this year may come later than usual. This also accounted for the delay in resumption of silicon producers in south-west China who mostly rely on hydropower for power supply.

SMM learned that silicon plants in Sichuan and Yunnan usually restart part of their capacity in April-May before moving up a gear on the arrival of the wet season in June. 

As of April 1, prices of non-oxidised 553# silicon in Kunming, Yunnan province stood at 10,400-10,600 yuan/mt, down from more than a year high of 11,400 yuan/mt in early March, SMM assessed. Prices of 3303# silicon in Kunming were assessed at 12,000-12,100 yuan/mt on April 1, compared with a high of 12,750 yuan/mt in early March. 

The COVID-19 outbreak in China intensified supply shortfall and lifted silicon prices in the second half of February.