Operating rates at Chinese silicon metal plants rose in September as more silicon mills resume operation

SHANGHAI, Oct 15 (SMM) – Operating rates across Chinese silicon metal producers recovered in September, rising 5.7 percentage points on the month and up 0.2 percentage points on the year to 45.4%, showed an SMM survey.

Recovery of production capacity in Xinjiang, Fujian, Inner Mongolia, Heilongjiang and other provinces led to an increase in the operating rate in September. Some of the production capacity in Inner Mongolia and Heilongjiang was resumed from maintenance, while others in Xinjiang and Fujian reopened with fair profits.

The electricity price will be adjusted to the normal water period price in Sichuan at the end of October, and the electricity cost will increase by 0.05-0.1 yuan/kWh. There are many chemical-grade silicon plants running all year round in Leshan and Aba, and the impact of normal water period is mainly manifested in cost. Some enterprises producing oxygen-filled 553# silicon in Liangshan and Ya'an will reduce production in November.

Nujiang River in Yunnan gets into the dry season before other areas in the province in November, and the silicon plant will reduce the shutdown time according to the furnace conditions. It is expected that the impact of the dry season on the start-up will appear in December.

Operating rates at Xinjiang silicon metal plants started to increase due to profit stimulation, lifting of production restrictions, and the imminent reduction of production in south China. Large-scale factories such as Hesheng, East Hope and Jingxin all planned to increase operation in October, and some medium-sized silicon plants also planned to increase the operating load in October. The specific production increase quantity is limited by the supply of raw silica.

Operating rates at Chinese silicon metal plants are likely to peak in October, and will remain high in November. Operating rate is expected to rise to around 52% in October.

China produced 219,000 mt of silicon metal in September, and 1.49 million mt from January to September, 131,000 mt or 8.1% lower than a year earlier.