China's Industrial Silicon Metal Output was 307,900 mt in June and is Expected to Increase in July

SHANGHAI, July 12 (SMM) - SMM data shows that China's industrial silicon metal output was 307,900 mt in June, an increase of 3% month on month and 34% year on year. China's industrial silicon metal output totalled 1.6326 million mt in January to June, a year-on-year increase of 31%.

In June, the output of the three major producing areas of Yunnan, Sichuan and Xinjiang increased month-on-month, but the output in most provinces such as Fujian, Hunan, Shaanxi, etc. decreased month-on-month.

As the hydropower supply in Sichuan and Yunnan is relatively abundant, most silicon factories in Sichuan have resumed the production in late-May. Some silicon factories in Dehong, Yunnan have resumed the production in early-June, while some silicon factories have resumed in mid-June due to the poor market. The operating rates in Baoshan and Nujiang has increased. The capacity resumed in late-June has basically released. It is expected that the output in Yunnan and Sichuan will increase by about 17,000 mt month-on-month. The operating rates of various silicon factories in Xinjiang show ups and downs, and the total output in the region increased slightly by about 3,000 mt.

In Fujian, Chongqing, Shaanxi, Inner Mongolia and other regions, most silicon factories suspended the production due to the weak market, losses and poor equipment. The operating rates in some regions declined due to the weak market and the high cost while that in other regions increased amid the wet season. However, with the full release of the capacity in Sichuan and Yunnan, it is expected that the industrial silicon metal output may increase to around 330,000 mt in July.