[Spoiler] China Silicon Industry Chain Annual report 2021 - 2025

SHANGHAI, Nov 29 (SMM) - Silicon metals’ chart movement in 2021 has lined the silhouette of an epic-like market. The prices, which has already moved to above 60,000 yuan/mt, soared by as much as 180% within just a month while constantly recording new highs. It is worth pointing out that the silicon metals prices once surged by 10,000 yuan/mt in a single trading session, which lasted for two days, after the news came that the production in the major producing area of Yunnan would be cut by 90%.

The leading cause is that the surging silicon metal demand has been further exacerbated and catalysed by the supply side disruption from the energy consumption control policy. On the supply side, the resumption of production across silicon plants was first postponed due to the lack of electricity supply caused by the drought in south-east China. In the absence of new production capacity, the consumption of silicone, polysilicon, aluminium alloy as well as the exports all increased significantly, leading to the short supply of silicon metal. The market concerns over supply shortage were further intensified by a series of incidents, including the unexpected closure of a large smelter in Xinjiang in mid-July, the affected output of chemical-grade silicon due to the silicon coal shortage in August, and the 90% production reduction in Yunnan in September.

Under the background of dual control of energy consumption, silicon metal has transformed from the least valued upstream raw material in the industry chain into a sweet pastry pursued by all parties. The important resources and materials for the production of silicon metal such as electricity, silica, and cleaned coal have profoundly affected the entire industry. The terminal demand from sectors like the photovoltaic power generation is booming, but the upstream silicon metal supply has been increasingly unable to meet the demand due to the restricted production amid energy consumption control and short electricity supply. Meanwhile, the selective removal and integration of existing capacity was also pressuring the supply side.

When faced with such tremendous changes in the industrial chain, the silicon metal and polysilicon futures have then emerged as the times require. The question now lies in how silicon metal manufacturers, silicone and polysilicon companies, and traders can use the emerging tools to improve their production and operation capabilities? What kind of changes will the listing of silicon metal and polysilicon futures bring to the industry?

SMM 2021 China Silicon Industry Chain Annual Report will try to analyse the current status and development trend of the silicon industry chain from the microscopic perspectives of silicon metal, silicone, polysilicon, aluminium alloy, import and export market, silica, reducing agents, etc. SMM will also interpret the revolution and future of the industry chain from a macro perspective, and finally put forward some practical suggestions for the soon-to-list silicon metal and polysilicon futures, a tool that is unfamiliar to the silicon industry chain.

SMM research team is deeply involved in the industry, with in-depth understanding of every sector in the silicon industry. SMM firmly believes that the silicon industry chain report which has been profoundly prepared through our scientific industry research framework, our reliable market research data, and extensive industry chain networks will help you make better investment decisions with perfect foresight.