SHANGHAI, Sep 29 (SMM) - China is a major producer of silicon metal and one of the major exporters of the product. Silicon metal smelting is energy-intensive, so the capacity is mainly located in the north-west and south-west regions with abundant power resources. At present, the three main producing areas of silicon metal in China are Xinjiang, Yunnan and Sichuan. According to SMM statistics, Xinjiang, Yunnan and Sichuan collectively accounted for 78% of the annual output in 2021, and the rest of the producing areas include Fujian, Inner Mongolia, Gansu and Chongqing.
From the monthly supply curves of the three main producing areas, it can be seen that Sichuan and Yunnan post obvious seasonal variations due to changes in power supply. Electricity prices and other resource supply in Xinjiang are relatively stable, and the supply of silicon metal also changes little throughout the year.
A number of silicon metal projects are planned to be put into operation in 2022, and the new capacity will be located in areas with rich power and silica resources such as Xinjiang and Inner Mongolia. Please refer to the figure below for the new silicon metal capacity in 2022.
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