July Increment in Industrial Silicon Output Lower than Expectation

SHANGHAI, Aug 6 (SMM) – July industrial silicon output in China stood at 272,000 mt, an increase of 64.4% year on year and 18.1% month on month, growth sustained according to SMM survey.

Increases in July from the previous month was resulted from the seasonal high among silicon companies as the south-west China entered wet season. However, the increment in output was still behind expectation. Power restrictions in Baoshan and Nujiang in spite of the wet season were among the major causes, which has led to production reductions or reduced operating rates. On the other hand, an unexpected production suspension of a company in Xinjaing in Mid-July caused by accident also reduced the month’s output by around 10,000 mt than the previous period.

Follow-up rainfall capacity will determine the endurance of power restrictions in Yunnan. But one thing is certain that, even if the tight power supply were eased, it was still unable to support higher operating rate but to maintain the normal operation of the existing production. While the company in Xinjiang is still pending notice from relative authorities to resume production.

In consideration of the high uncertainty in operating rates in the two major producing regions, August silicon output is expected at around 290,000 mt from an optimistic view.