SHANGHAI, Sep 22 (SMM) – According to customs data, China's silicon exports in August 2021 were 68,000 mt, up 6% month on month and 46% year on year. The exports totalled 533,000 mt from January to August, up 41% year on year.
The export volume of silicon metal remained high in August, unaffected by the off-season in the overseas market. Domestic silicon prices rose by over 60% in August, which was not expected by overseas users. Some users made additional purchase due to the insufficient stocks. Besides, the lack of shipping capacity was eased in August, and some of the backlog of silicon metal at ports was delivered.
China’s silicon prices exceeded overseas prices after surging for two months, which was rare in the history. China's export advantage of silicon metal has weakened due to the high prices. Most plants need to deliver silicon for the overseas long-term orders, of which the supply remains tight, so it is hard to import silicon to supplement the domestic supply.
Some domestic downstream companies have recently called for an increase in export tariffs on silicon metal. However, SMM believes that it is difficult to impose export tariffs on China's silicon metal export due to the violations of WTO guidelines.
The silicon metal exports are expected to rise to 75,000 mt in September.
