The Silicon in August 2020

Silicon metal market in August

The price of silicon metal rose significantly in August. Affected by Xinjiang epidemic and flood, the operating rate of silicon metal factories in Xinjiang and Sichuan is low. Some grades are in short supply and the price is rising rapidly. In August, metallurgical grade silicon metal market is in good demand. The main reason for the popularity of oxygen silicon market is the high consumption capacity brought by the domestic polysilicon. The powder silicon plants are actively preparing goods with high purchasing enthusiasm. Xinjiang and other places have a low operating rate, and it is difficult to purchase the goods. However, in Yunnan and other regions, the price increased relatively slowly. In August, the price of chemical silicon rose rapidly due to the recovery of polysilicon market.

Silicon metal export market
In July, the export volume was 45061 tons, an increase of 15313 tons on a month on month basis. Compared with July 2019, it decreased by 10094 tons or 18.30%. In the third quarter, exports began to increase slowly. Although the volume is lower than the same period in previous years. But at present, the overseas epidemic situation has been alleviated, and the factories gradually resume production. After consuming the inventory, they began to actively inquire. The overseas big plants began to purchase for the fourth quarter.

The operation and the output
In August, 266 sets of silicon metal furnaces in China were put into operation, which reduced by 1 set on a month on month basis and 28 sets were reduced on a year-on-year basis. The operating rate was 43.75%, down 0.09% month on month. Production capacity released 43%, down 0.27% month on month. The total output is about 198700 tons. The output increased by 15570 tons on a month on month basis. It decreased by 8.73% by 19010 tons on a year-on-year basis. The total output from January to August is 1307820 tons, which is 104230 tons lower than that in January to August in 2019, a decrease of 7.38%。

The operating rate of Xinjiang is generally lower than that of last year due to many reasons, such as limited export volume due to epidemic situation in Xinjiang, shortage of raw material silica, financial difficulties of factories and accidents. Sichuan will return to produce after production reduction due to flood disaster. Yunnan resumed work at a stable high level during the wet season. The rest areas like Fujian, Chongqing, Inner Mongolia, Hunan, Guizhou with low operating rate o maintain only a few furnaces.