China Silicon metal Output In September And Forecast For October

According to SMM statistics, China's silicon metal production in September was 356,300 mt, up 11% on the month and 10.2% on the year. The total output was 2.6552 million mt in the first nine months of 2023, up 3.52% year-on-year.
According to SMM data, above-standard 553# silicon metal prices in East China were 15,400 yuan/mt on September 28, an increase of 2,500 yuan/mt, or 19%, from July 30. Losses-generated silicon metal production cuts in May-July led to destocking in the industry. In addition, active demand from polysilicon persistently pushed up silicon price in August-September. Under such circumstance, with higher profits, more silicon plants, most notably in north China, resumed operation from maintenance. The biggest increase in domestic silicon production in September was monitored in Xinjiang, Sichuan, Shaanxi and Inner Mongolia. The operating rate of large silicon plants in Xinjiang hiked, but the overall growth rate was in a slow pace. Xinjiang GCL started operations at eight new furnaces with 33,000KVA capacity for each. Most production areas showed output increases in September.
The operating rate during the rainy season in Sichuan and Yunnan reached its annual high level. By the end of October, it will transition from the rainy season to normal water level season. Silicon producers will keep operation normal in October. There will still room for operating rate to move up in north China, while operation resumption will partially occur in south China, like Guangxi. Therefore, domestic silicon production will continue to pick up in October.