SHANGHAI, Jul 6 (SMM) – China’s exports of silicon metal declined by 36.2% month on month and 53.6% year on year to stand at 31,000 mt in May, the lowest level since February 2012, showed China customs data compiled by SMM.
China’s monthly exports of silicon metal in 2018-2020 (unit: mt, source: China customs, SMM)
Overseas buyers consumed stockpiles slowly in May as they mostly reduced or suspended output due to the coronavirus impact, following after they stockpiled aggressively in February on concerns about supply disruption from China when the domestic pandemic was at its peak. Some foreign producers restarted purchases of raw materials in June as they resumed operations, after a widespread shutdown in May.
Nonetheless, the resumption of work overseas as of early July was mostly seen in Asian countries such as Japan and South Korea, and the operating rates and purchases have not recovered to the pre-pandemic levels. Downstream procurement in Europe and the Middle East remained suspended, with the delivery of orders for the first half of the year being postponed to the second half.
An addition of low-cost capacity of polysilicon in China triggered closure or overhauls of some major producers overseas, and this also accounted for the reduced exports of China’s silicon metal in May.
SMM expects China’s exports of silicon metal to stand at about 50,000 mt in June. The exports in the June-August period will improve significantly from May, SMM assessed based on orders at traders. But it will take more time for China’s export market to normalise given the current end-users demand outside China and potential production halt amid high temperature.
