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Weden Metal Co.,Limited

Add:1105RM Rainbow Mansion, Renmin Road 23rd, Dalian, Liaoning Province, China.

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2017 China silicon metal supply and demand situation

Weden Metal Co.,Limited | Updated: Jan 05, 2018

Silicon metal production capacity concentrated in the northwest and southwest regions, environmental short-term fluctuations in prices caused by: silicon metal, also known as industrial silicon, made of silican and coke in the electric furnace smelting, belonging to high energy consumption, high pollution industry, the main cost is silica ( Accounting for 48%) and electricity (41%). The domestic production capacity mainly concentrates in Xinjiang, Sichuan and Yunnan where silicon ore resources are abundant and electricity costs are lower, accounting for more than 75% of the total output. In August 2017, the Central Environmental Protection Inspectorate was stationed in Xinjiang and Sichuan. The local silicon metal production enterprises reduced the load stage by stage. In short supply, the market price of silicon metal rose highly. As the environmental inspectors finished their work, The industry started to resume operation.

The future of adequate supply of silicon metal, prices look back to the historical average: As of the end of 2016, the domestic effective production capacity of 3 million tons of silicon metal, production of 2.1 million tons, the operating rate of 70%, the overall oversupply. Silicon downstream (42%), silicon (24%), aluminum (19%), polysilicon (12%), the future demand continues to grow, but the supply is still sufficient.