Operating Rates Climb above 60% at Silicon Producers in Fujian Province

According to latest SMM survey, operating rates at silicon producers climbed to some extend, and overall operating rates throughout Fujian province were above 60%. Domestic silicon producers were optimistic towards future market, although electric power costs remained at high levels in the RMB 0.52-0.54/kWh range. 16 silicon producers were surveyed with total 91.5 kt/yr capacity. Among the 16 silicon producers, 9 of them worked at full capacity and 5 of them still halted production (one producers turned to produce ferrosilicon), while the rest 2 producers worked with operating rates in the 17%-50% range.

Sales of silicon reported good performance in Fujian due to high quality of the products. Currently, ex-works prices were in the RMB 12,200-12,300/mt range for # 553 silicon metal, RMB 12,800/mt for # 441 silicon metal, RMB 13,600/mt for # 3303 silicon metal and above RMB 14,000/mt for # 2202 silicon metal. Person-in-charge at silicon producers told that operating rates would rely on market conditions, and producers would halt production at any time if prices of silicon metal declined.

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