Operating rates of China silicon plants fell to fresh 4-year low in March

Published: Apr 15, 2020 16:15 (GMT+8)

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Last month, the capacity in operation reduced in Xinjiang, Sichuan and Shaanxi. Continued raw materials shortage kept major silicon plants in Xinjiang from resuming the capacity that has been shut down since February. Meanwhile, falling silicon prices prompted some medium-scale producers to cut output or undergo maintenance in the second half of March.

SHANGHAI, Apr 15 (SMM) – Operating rates across Chinese silicon metal producers continued to trend downwards in March, falling 0.5 percentage point from February to 27%, the lowest level in the past four years, following a steep decline of 9.8 percentage points in February.

On a yearly basis, the operating rate was 6.3 percentage points lower in March.

Silicon mills in Nujiang, Yunnan province, delayed their resumption by half a month than the previous year, to mid-March. This left the average operating rate in Yunnan 1.6 percentage points higher on the month at 14.7% in March.

Silicon output also rose in Fujian, Hunan, Guangxi, Qinghai and Chongqing last month, but this failed to lift the overall operating rates due to its small market share.

In Sichuan, weak silicon prices may depress producers willingness to restart production, which will cap any rebound in the April operating rates in the area, SMM expects.

Some silicon plants in Sichuan have finished the pre-resumption maintenance and have stockpiled raw materials. The electricity prices in Sichuan will be adjusted to levels for the normal-water period by end-April, which will be lower than the current prices in the dry season.

SMM expects the operating rates across Chinese silicon mills to recover to around 30% in April, primarily driven by the resumption of producers in Nujiang, Yunnan, who are expected to ramp up to full capacity this month.

Operating rates Silicon

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