According to SMM statistics, China's silicon metal production in November decreased by 65,100 mt, down 13.9% MoM, and slightly increased by 0.3% YoY. From January to November 2024, cumulative production increased by 1.116 million mt, up 32.3% YoY.
The significant MoM decrease in November was mainly due to increased costs from higher electricity prices amid the dry season in Sichuan and Yunnan combined with the sluggish silicon prices. The combined MoM reduction in Yunnan and Sichuan was around 65,000 mt. Additionally, some silicon enterprises in Fujian, Chongqing, and other regions also reduced production. The operating rate of northern silicon enterprises was basically stable, maintaining at a high level.
Entering December, silicon metal production is expected to be significantly reduced again. On one hand, the operating rate of silicon enterprises in Sichuan and Yunnan is expected to weaken further, with Sichuan's production expected to fall below 10,000 mt in December and Yunnan's monthly production to hit a three-year low. On the other hand, top-tier enterprises in Xinjiang experienced two rounds of significant production cuts in early December, which are expected to have a substantial impact on the supply for the month. In terms of production increase, a few silicon enterprises have new electric arc furnaces, contributing a small amount of increase. Overall, the production schedule for silicon metal in December is expected to decrease to around 315,000 mt.
