Operating rates at silicon metal plants peaked in December

SHANGHAI, Jan 14 (SMM)—Operating rates at silicon metal producers in China gained 4.8 percentage points on the month to 55% in December, according to an SMM survey. This was 16.1% higher than the same period last year. Higher operating rates in Xinjiang, Fujian, Guangxi, Shaanxi and Hunan offset declined supply from south-west China amid a dry season.

High silicon prices also boosted operating rates. In addition, plants in Yunnan Dehong and Nujiang and Sichuan Ya’an, Shimian and Liangshan Mianning maintained operating rates after adjusting to power tariffs in a dry season. Some of them gradually suspended production during end December-early January, while a few planned to operate till the end of January. Operating rates stood at 45.96% and 34.4% in Yunnan and Sichuan respectively in December, up 25.1% and 9.7 percentage points year on year.

Operating rates in Xinjian gained 12.9 percentage points from November to 62.9% in December. Hoshine and East Hope continued to raise their operating rates, with output rising by 15,000 mt compared with November. Hoshine’s 400,000 mt of organosilicon monomer capacity is expected to be brought online in February, and by then its consumption of silicon metal is likely to increase by nearly 10,000 mt per month.

SMM expects operating rates to fall to about 49% in January 2021.

China produced 2.2 million mt of silicon metal in 2020, down 1.6% on the year.

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