SHANGHAI, Dec 6 (SMM) – SMM data shows that China's industrial silicon output was 300,000 mt in December, an increase of 10% month on month and 29.5% year on year.
The output mainly increased in Xinjiang and Fujian, and the plants in Yunnan also raised their operating rates slightly.
The output in Sichuan decreased slightly on the month due to power rationing and environmental protection inspections. Heilongjiang saw nearly no local output in November due to COVID-19 pandemic.
The electricity prices in south-west China have been raised for the dry season since November 26. The average electricity price in Yunnan and counties in Sichuan has been lifted by about 0.3 yuan/kWh from the rainy season to 0.6 yuan/kWh. The electricity costs of silicon plant will increase significantly in December, but the production has not been cut sharply because the plants still had brisk profits, and the late rainy season in Yunnan brought sufficient hydro-power supply to most silicon plants in early December. In Sichuan, only a few plants suspended production, and most silicon plants maintained production with the extra power supply from State Grid.
As the silicon prices pulled back to near the break-even point, the silicon production in south-west China may be curtailed significantly at the end of December.
China’s output of industrial silicon is expected to stand at 295,000 mt in December. The total output in 2021 is expected to rise 33.6% on the year to 2.94 million mt.
