The Silicon in February 2021

Metallurgical grade silicon metal market

Metallurgical-grade silicon metal were severely scarce in February. The operating rate in various regions is low and the capacity is insufficient. The price increased.

Market of chemical grade silicon metal

At the end of February, there were a small number of tenders issued by silicone factories with small quantity

The production of silicon metal

In February, the national silicon metal factory opened 255 units, reducing production by 10 units month-on-month. The operating rate was 42.08%, a decrease of 1.51% month-on-month; the total output was 199830 tons, and the month-on-month production decreased by 12,310 tons, down 5.8% . The production capacity was 255,020 tons, and the capacity release rate was 47.41%, a decrease of 0.82% from the previous month.

In February, it was also in a dry season. The southern silicon plant was under power supply restrictions. Xinjiang’s output accounted for more than 50% of the country. This was mainly due to the lowest start of the southern plant and the high transaction price in the market. The profit of the plant was considerable and the enthusiasm for starting operations was high. As a result, the operating rate of silicon plants in Xinjiang has jumped to 74%. The current power reform policies in various regions have been gradually implemented, and production in Inner Mongolia has been suspended. Sichuan and Yunnan have not yet reached the high water period, and there are few plans to resume production.

The downstream market of silicon metal

The downstream market for silicon metal surged across the board in February, with aluminum prices rising by RMB 2,300, an increase of 15.39%, the average price of polysilicon increased by RMB 11,000, or 15.07%, and the price of DMC increased by RMB 2,300, or 11.22%. The overall trend is gratifying, and it has played a certain supporting role in the rise of the price of metal silicon.