Silicon Production in Yunnan to Be Cut by 90% under Policy Control in Q4 2021

Published: Sep 13, 2021 16:22

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Yunnan Provincial Development and Reform Commission announced on September 11 that the average monthly output of local industrial silicon companies should not exceed 10% of the August output from September to December.

Shanghai, Sep 13 (SMM) – Yunnan Provincial Development and Reform Commission announced on September 11 that the average monthly output of local industrial silicon companies should not exceed 10% of the August output from September to December.

According to SMM survey, the output of industrial silicon in Yunnan was 71,000 mt in August. The monthly average output of industrial silicon is now stipulated to be no higher than 7,000 mt from September to December, and the total output in Q4 will be 89% lower on the year.

Yunnan's industrial silicon production is usually in full capacity during the rainy season from June to November, and production is reduced or shut down during the rest of the year.

Due to the late rainy season and power curtailment this year, the output of industrial silicon in Yunnan has dropped significantly. From January to August 2021, the output of industrial silicon in Yunnan was 249,000 mt, a year-on-year decrease of 18%.

The total output of industrial silicon in Yunnan is expected to be 277,000 mt in 2021, a year-on-year decrease of 299,000 mt or 52%.

The silicon plants in Dehong have held an emergency meeting this afternoon to discuss related matters. The plants in Baoshan and Nujiang have not yet received a clear notice.

As the rainfall in Yunnan was less than the previous years in 2021, local industrial silicon companies signed few orders in the worries about the impact of power cuts on production. Most silicon plants have already planned to reduce production in October, which is more than one month earlier than the traditional dry season.

Due to the power curtailment and production restrictions, there were only three months when Yunnan’s industrial silicon production was in full capacity.

The commissioning of new silicon production capacities in Yunnan in 2022 may be postponed amid the tight power supply and dual control on energy consumption.

silicon production

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