Silicon Metal Production Declines Both YoY and MoM in April, with Both Drops Exceeding 10% [Analysis by SMM]

SMM News on April 30: According to SMM market communications, silicon metal production in April 2025 was 301,000 mt, down 12% MoM and 16% YoY. The cumulative silicon metal production from January to April 2025 decreased by 12.6% YoY.

In March, silicon metal production saw a significant MoM decline, primarily due to large-scale production cuts by a major plant in Xinjiang in April, which had a substantial impact. Additionally, minor production cuts by a few silicon enterprises in north-west China's Gansu and other regions also contributed to a slight reduction in supply. In terms of production increases, Sichuan's production rose by 6,700 mt MoM, mainly driven by increased production or production resumptions by integrated supporting enterprises or silicon enterprises with cost advantages from small hydropower. Regarding new capacity, due to the continuous decline in silicon metal prices, with the main silicon metal contract falling by over 12% in April, some new projects have been postponed.

In May, the national silicon metal production is expected to increase slightly by 0.4% MoM, but with significant uncertainty. In Sichuan, production is expected to increase MoM due to the release of commissioned capacity and the resumption of a small amount of capacity. In Baoshan, Yunnan, the production schedules of operating silicon enterprises are expected to decline significantly in May, with limited production from new projects. Silicon enterprises that have halted production have little willingness to resume production due to the ongoing dry season, so Yunnan's production is expected to decrease MoM in May. In north China, due to the silicon price decline not yet reaching a bottom and costs coming under renewed pressure, there is a possibility of sudden production cuts by silicon enterprises in the region, introducing variables to regional supply.