[Minor metal] Operating Rates Improve at Silicon Metal Factories

SHANGHAI, Apr. 16 (CBI China) -- Domestic silicon metal factories restarted operation gradually, mainly in Sichuan, Hunan and Yunnan provinces. The mainstream price for 553 grade silicon has fallen to RMB 9,100/mt.

    A factory in Sichuan said: “we did not resume production, but some factories nearby have restarted production. Current price left thin profit margins for the factories, so they may suffer losses on production resumption. Hence, we will wait till the end of this month.”

    The production cost of 553 grade silicon at factories with water and electricity advantages was in the RMB 8,200-8,800/mt range in Sichuan province, and the factories were cautious about the production resumption.

    Most of factories in Yunnan province said they will consider restarting operation around June when the electricity price policy is implemented. While some selected factories have restarted production at present, with 3303 and 2202 grade silicon as main products. The overall inventories in Yunnan province remained relatively high at about 20kt, mainly high-grade silicon metal. Currently, the delivery price in Kunming for 2202 grade silicon was in the RMB 9,700-10,000/mt.

    Recently, exporters said the inquiries increased, but the transactions remained weak. Demand is expected to improve during the peak season for export during May and June.

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