The price of metal silicon in the wet season is rising strongly

In August, domestic metal silicon was in a period of high water, and the start of production enterprises has reached the peak stage of the year. The substantial increase in spot stocks is bound to weigh on the spot price of metal silicon. However, the price of spot metal silicon in August continued to rise strongly.

According to statistics, at the end of August, the price of metal silicon increased significantly compared with the end of July: 553# metal silicon rose 1100 yuan / ton, an increase of 9.52%; 441 # metal silicon rose 1000 yuan / ton, an increase of 8.06%; 3303 # metal silicon rose 850 yuan / ton, an increase of 6.49%; 2202 # metal silicon rose 900 yuan / ton, an increase of 6.59%.


The domestic spot metal silicon market can be in the traditional rainy season in the country, and it is rare that the price of silicon approaches the price of the dry season at the beginning of the year. Why is the current metal silicon market still having such a large upward momentum under the sluggish market demand?

Recently, the construction of metal silicon-opening production enterprises in China was investigated recently. The sample of research enterprises was 58 and the total annual production capacity was 1.09 million tons. According to statistics, the operating rate of metal silicon furnace enterprises in China in August was 63.88%.

The above-mentioned research enterprise samples are only open-fired production enterprises, and do not include production enterprises that have not been opened for production due to environmental protection, elimination of backward production capacity, high electricity price, natural disasters and other factors. If the above-mentioned closed production enterprises are included, the overall operating rate of the national metal silicon production enterprises in August will approach 50%.

The data shows that in August of last year, the operating rates of all major metal silicon production areas were between 70% and 80%. It can be seen from the comparison that the start of construction of metal silicon production enterprises in China's flood season is obviously low.

The lower operating rate of metal silicon producers has not led to a significant increase in domestic spot metal silicon inventories. The relatively active domestic demand for downstream metal silicon in the early stage, as well as the strong reluctance of some holders, forced the domestic circulation of spot metal silicon to be tight, which also supported the current high metal silicon prices.

The National Development and Reform Commission recently issued the "Special Supervision of the State Council on Energy Conservation and Emission Reduction": 2010 is the year of decisive battle to achieve the "Eleventh Five-Year Plan" energy conservation and emission reduction targets. In order to urge local governments to further increase their efforts and ensure the realization of the “Eleventh Five-Year Plan” energy conservation and emission reduction targets, on August 26, the State Council formed six inspection teams for Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Jiangsu, Zhejiang, and Shandong. In 18 key areas including Henan, Hunan, Guangdong, Guangxi, Hainan, Sichuan, Guizhou, Qinghai and Xinjiang, special inspections on energy conservation and emission reduction were carried out.

Following the inspection of local electricity prices at the beginning of June this year, the government departments implemented another wave of measures aimed at energy conservation and emission reduction. Most of the major metal silicon production areas have also been included in the key inspections. A new round of special inspectors may once again allow some metal silicon producers to face the possibility of shutdown.

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