SMM4, March 2: there are still two months to go before the full flood season in Yunnan, most of the silicon plants have begun to overhaul and reserve raw materials to wait for the normal production after the flood season, but at present, due to the spread of the epidemic abroad caused by the shortage of raw materials charcoal and other problems may affect the silicon plant can not resume production as scheduled.
Yunnan Silicon Factory uses charcoal as a reducing agent to ensure the quality of finished products, and it is also the only remaining production area of concentrated use of charcoal in China. In addition to providing carbon sources for smelting, charcoal can also increase production because of its good air permeability and looseness.
Almost all of Yunnan charcoal is imported from Myanmar, and Yunnan customs import gates are closed due to the spread of the Burmese epidemic, which means that Yunnan silicon factories have no alternative to digesting charcoal stocks. Up to this week, Yunnan opening plants are mainly concentrated in Baoshan and Nujiang areas. According to SMM, the charcoal reserves of silicon factories in the two places are not abundant, and some manufacturers' charcoal stocks can only meet monthly production, while domestic traders have little inventory. By contrast, the problem of charcoal shortage in large enterprises is more serious.
Affected by the epidemic, Yunnan ore supply is also relatively tight. Before that, the main sources of ore in Yunnan were Yunnan Province, Myanmar, Vietnam and so on. Customs closure has suspended ore imports. At the same time, the mining volume of domestic mines is much lower than that of the same period last year because of the late start of this year and the lack of workers, while mining will be suspended after the advent of the rainy season, resulting in an increasing shortage of ore supply due to the superposition of internal and external factors.
In addition, SMM learned that at present, most of the desulfurization facilities in Yunnan Silicon Plant have already started, among which the relevant departments in Dehong Prefecture clearly require the local silicon plant to complete the acceptance of desulfurization equipment before June 30, and that production can only begin after the operation conditions have been met. Dehong Silicon Plant is affected by the desulphurization construction period or later than in previous years.
One reason for the recent rapid decline in silicon prices is the pessimistic expectations of an increase in supply in Sichuan and Yunnan during the flood season, but SMM believes that whether in terms of profitability, raw material supply or desulphurization, the recovery rate of domestic supply will not be too fast, and the operating rate during the flood season is more likely to be on the low side compared with the same period last year.