Silicon metal production in January decreased by around 8% MoM [SMM Analysis].

SMM, January 24: According to SMM market communication, silicon metal production in January 2025 decreased by 8.3% MoM and 12.2% YoY.

According to SMM market communication, silicon metal production in January 2025 decreased by 8.3% MoM and 12.2% YoY. Regarding the MoM reduction, the production cuts mainly occurred in Xinjiang, Yunnan, Sichuan, and Qinghai. The decrease in silicon metal production in Xinjiang was primarily driven by production cuts from top-tier silicon enterprises. In Yunnan and Sichuan, the reduction was mainly due to high costs during the dry season and selling prices falling below costs, leaving only a few furnaces in operation in Sichuan and a few silicon enterprises in production in Yunnan. In Inner Mongolia and other regions, monthly production increased slightly due to the release of new capacity.

In February, the operating rates of silicon enterprises of different scales will continue to diverge. A small portion of capacity from top-tier enterprises in Xinjiang began to resume production in late January, while the operating rates of small and medium-sized silicon enterprises are expected to weaken. Considering February has three fewer production days than January, overall, silicon metal production is expected to decline to around 280,000 mt in February.