Yunnan's production capacity released slowly in June, increment in industrial silicon output lower than expectation

SHANGHAI, Jul 15 (SMM) - SMM data showed that China's silicon metal output stood at 230,000 mt in June, up 41,000 mt or 21.7% from the previous month. The output generally increased across all regions except for Xinjiang. The output totalled 1.25 million mt from January to June 2021, an increase of 38.1% on the year.
Silicon plants in the production areas in south-west China resumed production in the wet season. Most of the silicon plants in Sichuan have started operation, while the silicon plants in Yunnan did not start production until after the Dragon Boat Festival due to power curtailment. The output in Yunnan only increased 12,000 mt on the month in June, but fell 64% from the same period in 2020.
In addition to the seasonal recovery of production capacity in Sichuan and Yunnan, production in the other areas has mostly increased from May under the stimulus of profits. Only Xinjiang saw a slight output decrease by 2% month on month due to safety rectification, and reduced production capacity is expected to have resumed in early July.
The output in Yunnan will gradually increase in July and August. The national silicon output is expected to rise to around 293,000 mt, higher on a yearly basis.