Industrial Silicon Metal Output in September Rose MoM as Pressure on Supply Caused by Power Rationing and Pandemic was Relieved

SHANGHAI, Oct 13 (SMM) - SMM data shows that China's industrial silicon metal output was 323,400 mt in September, an increase of 11.5% month-on-month and 17.9% year-on-year. The output totalled 2.56 million mt from January to September, an increase of 23.8% on the year.

At the end of August, silicon metal plants in Sichuan resumed the operation one after another amid power supply resumption. The growing operating rates led to an increase of 14,000 mt in silicon metal output, the largest proportion of the overall output increase in September. The output increased slightly in Xinjiang, where silicon metal plants, which had been previously shut down due to the pandemic, also resumed the production. Besides, the rising operating rates of silicon metal plants in Fujian, Inner Mongolia, and other provinces in northeast China also contributed to the increase in total output.

Sichuan is expected to enter the normal water period at the end of October, and the electricity prices are likely to be raised under the impact of power shortage in August. However, the production of local silicon metal plants will be little constrained since the profits outweigh the costs. The production capacity in Yunnan has been limited since September 26, when production restriction policy was implemented and will have great negative impact on the output in October. At the same time, new production capacity continues to be commissioned in October, and the production capacity of large factories in Xinjiang and Sichuan continues to be released, thus it is expected that the domestic output of silicon metal will maintain a month-on-month increase in October.