Silicon metal production increased slightly MoM in May, with a significant increase in production scheduled for June [Analysis by SMM]

SMM News on June 3: According to SMM market communications, the production of silicon metal in May 2025 was 307,700 mt, up 2.3% MoM and down 24.6% YoY. The cumulative production of silicon metal from January to May 2025 decreased by 15.3% YoY.

The production of silicon metal increased MoM in May, with varying increases and decreases across different production regions. Production increased MoM in Sichuan, Ningxia, and Inner Mongolia, while most other production regions, including Xinjiang, Yunnan, and Henan, experienced varying degrees of decline. Sichuan saw the largest increase in production MoM in May, exceeding 12,000 mt, due to the production release from newly launched projects and the resumption of production at some capacities. Although new projects were launched in Yunnan, the production ramp-up was in its early stages and required time, coupled with the suspension of some old capacities, resulting in a MoM decline in monthly production.

The silicon metal market faced setbacks with prices declining, leading to cash flow losses for producers. Production resumptions in south-west China were significantly lower than the same period in previous years. Additionally, the operating rates of small and medium-sized silicon enterprises in the north were also weak, resulting in an expanded YoY decline in monthly silicon metal production in recent months. In June, production schedules are expected to increase for silicon enterprises in the main production regions of Xinjiang, Yunnan, and Sichuan. Xinjiang is expected to see an increase in production due to the resumption of production at top-tier enterprises, while Sichuan and Yunnan are expected to see incremental growth due to the ramp-up of new projects and contributions from a small number of silicon enterprises. Overall, it is anticipated that the production of silicon metal in June will increase by more than 30,000 mt MoM.