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Why do silicon metal prices continue to rise？

Recently, the transaction price of silicon metal market has been rising all the way, and it has risen by more than 2,000 yuan in a row after a year. The reason is mainly the following four aspects, I hope it can help you;

First,Increased consumption. Some new projects of downstream organosilicon and polysilicon were put into production;

Second, rising costs. The raw materials silicon coal, oil coke and electrodes are all showing an upward trend. Among them, oil coke is tense, and the price has continuously risen by more than 1,000 yuan, and the cost of metal silicon smelters has directly risen by about 1,000 yuan;

Third, downstream benefits. After the Spring Festival, the price of organic silicon keeps rising, polysilicon is running at a high level, sometimes rising, and the entire industry chain is in a state of rising water;

Fourth, the new increase in output is small. In March, the operating rate of the main producing areas such as Sichuan and Yunnan was still at a low level throughout the year. The current operating rate is less than 35%. In addition, due to environmental protection inspections and periodic maintenance in Xinjiang, some factories are still in a state of production reduction, and the national production increase is relatively small. The operating rates of downstream organic silicon and polysilicon are both above 90%, and the consumption is stable and high.

Of course, after the market goes up in 2021, the operating rate of silicon metal is relatively high, and there are still more surplus stocks in the market. In January-February 2022, the production of silicon metal will increase by 98,000 tons year-on-year, but the downstream market consumption will also increase by 3- 40,000 tons. At present, under the circumstance of sufficient supply in the market, silicon prices continue to rise, mainly because the capacity of silicon factories to store goods has doubled, and whether to ship or not depends on profits, not on their own financial constraints. At present, the silicon market is in a stage of vigorous development, and its price trend can no longer be determined solely by supply and demand.

The above are several reasons for the rise of metal silicon. I hope it can be helpful to you. For more questions about metal silicon, please feel free to consult us.