[Minor metal] Operating Rates at Domestic Silicon Metal Producers Are 50%

SHANGHAI, Oct. 16 (SMM) -- Operating rates at domestic silicon metal producers are approximately 50%.

    Operating rates at silicon producers in Yunnan province are 85%. Local silicon producers enjoyed lower production costs, since the electricity prices were about RMB 0.3/kWh. According to a SMM survey of 16 silicon producers, 12 producers operated at full capacity, and only 2 producers suspended production for unit maintenance as a result of unstable smelting furnace. In addition, local sales remained stable as well.

    Operating rates at silicon producers in Sichuan province were 53%. Producers said the actual profit margins were limited despite of lower electricity price at RMB 0.35/kWh, and market consumption remained unchanged from pre-holiday levels.

    Operating rates at silicon producers in Fujian province were 45%, although local electricity prices were relatively high at RMB 0.5/kWh in China. Producers were not optimistic about current market, and their purchasing interest was low as well despite of rising offers.

    According to SMM sources, the electricity prices will inch up further. However, market supply will remain stable in the near future given current relatively high market inventories.

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