Xinjiang Silicon Enterprises Slightly Increase Operating Rate; Sichuan and Yunnan Maintain Normal Production [SMM Silicon Metal Weekly Survey]

According to the SMM survey, the weekly production of sample silicon enterprises in Xinjiang (accounting for 79% of capacity) was 42,090 mt, with a weekly operating rate of 87%, up from before the National Day holiday. In-plant inventory also increased compared to before the holiday. Recently, some previously suspended silicon metal capacities in Xinjiang have resumed production, driving up the operating rate in the region. Regarding silicon metal order signing, downstream silicon procurement orders were limited before and after the National Day holiday. Combined with normal production, overall in-plant inventory showed an accumulation. Most small and medium-sized silicon enterprises are executing futures and spot orders, with no pressure to ship, and are standing firm on quotes.

In Yunnan, sample silicon enterprises (accounting for 30% of capacity) had a weekly production of 7,680 mt, with a weekly operating rate of 90%, unchanged WoW. Yunnan sample silicon enterprises maintained normal operations before and after the National Day holiday. As the rainy season is expected to end, silicon enterprises are also showing a firm pricing attitude, with potential production cuts in Yunnan possibly occurring at the end of October.

In Sichuan, sample silicon enterprises (accounting for 32% of capacity) had a weekly production of 4,588 mt, with a weekly operating rate of 70%, unchanged WoW. Before and after the National Day holiday, most silicon enterprises in Sichuan also maintained normal operations. After the holiday, spot silicon metal prices slightly increased by 100-200 yuan/mt, with limited actual trading volume. In November, Sichuan will transition from rainy season electricity prices to transitional period electricity prices, leading to higher costs. Combined with limited silicon price increases, the regional operating rate is expected to weaken.