The Silicon in May 2020

The market of silicon metal in May 2020

The market review in May

（1）Domestic metallurgical grade silicon market

At the beginning of May, the price increased a little. However, there was little demand at the middle of the May. The traders were negative for the following market. So they don’t purchase silicon metal for stock. More si plants started to reproduce at the end of April. Most people regarded the price may reduce more. At the beginning the supply of 553 was tense. But the inquiries for 553 were less and less. There were abundant 553 at the market now.

 (2) Domestic chemical grade silicon market

Generally, the price for the chemical grade silicon metal reduced in May. The downstream buyers purchased si twice a month insteading of once a month. The price reduced by 50usd/ton at the first half of May. The price went down by more 40usd/ton at the second half of May. But at the end of May, the factories wouldn’t like to reduce the price more since the southern factories only reproduce a small quantity si metal. Some factories said that it was very difficult now because of the high production cost.

 (3)The exporting silicon market

The exporting quantity of silicon metal in April had reduced by 8326ton,14.60%, compared with the same period of 2019. It went down by 32874ton,40.29%, compared with March.The total exporting quantity from January to April is 225,137ton,which reduced 3.78% compared with the same period of last year. In May, the exporting market was pretty weak. The overseas governments encouraged the factories to reproduce. It is predicted that the demand for silicon metal in June will increase little by little.

About the operation and production

201 furnaces were in producing in May, which increased by 6 furnaces. The operation rate is 33.11%. The total production quantity was 148,620ton, which increased by 3,540ton than last month but reduced by 3,510ton than the same period of last year. From January to May, the cumulative production was 742,070 tons, with a year-on-year reduction of 57,050 tons. The production capacity in May was 186,280 tons, with an increase of 1,900 tons than last month. The operation rate was 34.75% .It increased 0.59% than last month. It is predicted that more factories in Sichuan area and Yunnan area will reproduce in June. The production quantity may increase to 180,000ton.

The high water flow season is coming in June. The electricity price has reduced at Sichuan area and Yunnan area. There will be more production of silicon metal . The price is predicted to reduce to some degree in June.