China silicon metal output increased in November as output growth in the north outpaced production cuts in Sichuan and Yunnan

China produced 403,400 mt of silicon metal in November, up 11,000 mt or 2.8% MoM and 29.1% YoY, according to SMM statistics. The total output was 3.4511 million mt in the first eleven months of 2023, up 7.8% YoY. The operating rate of silicon metal plants climbed to high level in north China, while that kept dipping in southwest China in December. Under this circumstance, silicon metal output in China will diminish in December after peaking in November.
Falling silicon metal output in November was mainly monitored in Yunnan and Sichuan, with a total output decreasing by around 27,000 mt. In Xinjiang, silicon metal output increased by more than 30,000 mt in November, mainly boosted by higher operating rate of large plants and new capacity of some small plants. With start-up of new capacity, silicon metal output inched up in Ningxia, while that in Inner Mongolia, Qinghai, Shaanxi, Chongqing and other places changed little.
Silicon metal output still mixed in December. In northern China such as Xinjiang and Ningxia, silicon metal output hiked amid rising operating rate. High costs and low silicon prices kept dragging down the operating rate of silicon metal plants in south China. Electricity prices generally increased to above 0.5 yuan/kWh in December in Sichuan and Yunnan. The electricity prices in some areas of Sichuan hit 0.63 yuan/kWh. The operating rate in Sichuan and Yunnan may drop to 22% and 39% respectively in December. On the whole, it is expected that silicon metal production in China may drop to around 360,000 mt in December.