Operating Rates at Silicon Metal Producers in late August up 25% MoM

SHANGHAI, Aug. 25 (SMM) -- Silicon metal producers in Dechang region of Cichuan province began to resume production in mid August. The number of furnaces on operation increased from 3 in early June to 7, and operating rates were up 25% MoM.

According to an official from a local silicon metal producer, production resumption at some silicon metal producers is mainly due to support from electricity supply with lower electric power charges from small hydropower grid. However, electricity supply from small hydropower grip will be restricted. Electricity supply quotas will only meet demand for 1 electronic arc furnace each company, and supply from small hydropower grid will be cut off in early November.

According to SMM survey on operating rates at silicon metal producers in Dechang region, current operating rates are still low at 43.75%. As supply of electricity from small hydropower grid is limited, producers still need to buy some electricity from state grid. In this context, electric power charges from local small hydropower grid may be lifted. 
 
Inventory levels at silicon metal producers are at extremely low level due to low operating rates, and high spot prices for silicon metal also silicon metal prices. The latest offers from producers for #553 silicon metal delivering to Huangpu port are RMB 12,700/mt

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