1. In consideration of environmental factors, some parts of China have issued policies to suspend production. For example, the production restriction policy in Yunnan has been partially implemented. On September 19, Dehong Development and Reform Commission issued a document to limit the production and capacity of the high-energy-consuming industries in The prefecture according to the monitoring of energy consumption. From September 20 to 30, 2021, 29 silicon enterprises in the prefecture will be shut down for six days and open for one day (open for one day on The 26th), and then shut down for four days. In jiangsu, Guangdong, Zhejiang and other major chemical provinces, thousands of enterprises have suspended production and lost power.
2. Silicon metal skyrocketed
Recently, the increase of silicon metal is much higher than that of organic silicon. On September 22, the price of 421# in East China was increased by 10000 yuan/ton to 55000 yuan/ton. The main reasons are as follows:
1. Due to the shortage of power supply, Yunnan Baoshan Silicon Factory suddenly stopped production on May 13 for a month. After the Dragon Boat Festival in June, the production was gradually resumed.
2. The epidemic in Dehong, Yunnan province in late July reduced the transportation capacity and increased the transportation cost of raw materials and finished products. On the premise that some silicon furnaces in Baoshan were suspended for power rationing, Dehong Silicon Factory also received notice of possible power rationing, and the potential impact of epidemic and power rationing on production caused the silicon factory to increase its quotation.
3. Yunnan tightened the double control policy on energy consumption. As the second largest province in silicon metal supply, the silicon market was shaken after the document of Yunnan Provincial Development and Reform Commission on September 11 came out on September 13.