SHANGHAI, Feb 9 (SMM) - SMM data showed that China’s industrial silicon output stood at 273,800 mt in January 2022, down 8.97% month-on-month, but up 10.44% year-on-year.
In January 2023, prices of above-standard #553 silicon fell to 17,300 yuan/mt in east China, with the ex-works price of some plants falling below 16,500 yuan/mt. Affected by the sluggish consumption of downstream aluminium alloys and silicone as well as the gloomy exports, silicon plants saw poor shipments and orders.
The average electricity price in Xinjiang was 0.32 yuan/kWh, and that in north-China was generally above 0.5 yuan/kwh. For silicon plants in south-China, the full cost was mostly concentrated at above17, 500 yuan/mt. The losses and market pessimism forced the plants to cut or halt production. The output declined most sharply in Yunnan and Sichuan with a drop of 10,000-12,000 mt, followed by Hunan and Guizhou where the output fell by some 4,000 mt. New capacity accounted for the output growth in Xinjiang, and the output in Inner Mongolia and Gansu grew only marginally due to maintenance and new capacity.
In February, the operating rates during the low-water period in Yunnan and Sichuan, the main producing areas, will change little compared to January. The overall output in Xinjiang, Inner Mongolia and Gansu will continue to increase thanks to the commissioning of new capacity. The silicon supply in north-west China will outperform that in south-west China. Driven by the new capacity, industrial silicon output in February will increase to more than 280,000 mt.
