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Supply continues to be tight, and the price of metal silicon is rising day by day. The price of silicon metal has risen by about 119% compared to the beginning of the year. The electricity curtailment in Yunnan and the coal restriction policy in Xinjiang have restricted the production capacity of silicon metal, and silicon metal is expected to maintain a high price trend in the future.

　　The supply side continues to be tight

Analysts said that as the upstream of the silicon industry chain such as organic silicon and polysilicon, metal silicon is a major carbon emitter. It takes 13,000 kWh to produce one ton of metal silicon, and the carbon dioxide emission per ton of metal silicon using thermal power as energy is 15.91 tons of carbon dioxide. Equivalently, the carbon emission per ton of silicon metal using hydropower as energy is 5.32 tons of carbon dioxide equivalent. It is expected that the new capacity of the industry will be severely restricted in the future, which will promote the price of silicon metal to maintain high prices.

Currently, Yunnan's production restriction policy has been partially implemented. On September 19, the Dehong State Development and Reform Commission issued a document showing that according to energy consumption monitoring, the state’s high energy-consuming industries will be limited in production and energy. From September 20 to 30, 2021, 29 households in the state will be limited. The enterprise implements the measures of "stop for 6 days, open for 1 day (open for 1 day on the 26th), and stop for 4 more days."

The main increase in demand for silicon metal comes from photovoltaics and organic silicon. The demand for metal silicon at home and abroad has increased significantly.

　　The main production areas of domestic silicon metal are in Xinjiang, Yunnan and Sichuan. Affected by the power curtailment in Yunnan and the coal restriction policy in Xinjiang, the domestic production capacity of silicon metal is restricted, resulting in tight supply of silicon metal and rising prices. In addition, some silicon metal companies have subsequent annual maintenance plans. The supply of silicon metal will still be tight in the future, and the price of silicon metal may rise further.

　Insufficient electricity in various places has hindered the start-up of the furnace. It is expected that the subsequent supply shortage will continue until the peak hydropower season in April 2022, and the price of silicon metal will continue to rise.