SHANGHAI, Sep 15 (SMM)—Operating rates across Chinese silicon metal plants increased in August as rising silicon prices brought profits back to positive range, encouraging plants to ramp up production. In addition, plants in Yunnan, Fujian, Guizhou, Xinjiang and Chongqing who have recovered from maintenance also contributed to the increase in operating rates.  

An SMM survey showed that operating rates at silicon metal plants gained 6.7 percentage points on the month, but lost 2.7 percentage points on the year, to 39.7% in August.

Motor transport in Xinjiang recovered after virus-induced lockdowns were lifted from September 1, easing shortage of raw materials at local silicon plants, but operating rates at two large-scale plants did not increase. One of them has been keeping operating rates at about 30% since February due to shortage of raw materials, and the other, which halted production in early June, remained suspended as it has not acquired the resumption approval. 

Operating rates are expected to rise further to about 41% in September as some plants in Inner Mongolia and Heilongjiang plan to resume operations in September. 

China produced 201,000 mt of silicon metal in August, and 1.27 million mt in the first eight months, 114,000 mt or 8.2% lower than a year earlier, but was 0.8% higher than in the first half of 2020.