Silicon Metal Production Trends: Recent Developments

The silicon metal industry is currently going through a period of volatility, as highlighted in recent reports from Sina Finance and Baichuan Yingfu. As of March 6, 2025, the number of silicon metal furnaces in operation in China was 237, with activity slightly reduced and the overall furnace operating rate at 31.35%. This was a decrease of 3 units compared to the previous week, indicating that producers have taken a cautious approach amid changing market conditions.

The latest data shows that the output of industrial silicon in February 2025 was 289,500 tons, a decrease of 1.45 tons from January, a month-on-month decrease of 4.8%, and a sharp year-on-year decrease of 16%. The cumulative output from January to February was 593,600 tons, a decrease of 97,000 tons from the same period last year, a year-on-year decrease of 14%.

Despite these setbacks, there are signs of optimism. Large plants are reportedly pushing ahead with plans to resume production, which could lead to an increase in the number of operating furnaces in the coming weeks. Sporadic reductions and outages in various regions are likely to be temporary as the industry adapts to market demand and operational challenges.

As the silicon metal market navigates these complexities, stakeholders are closely watching production trends and capacity utilization. The interplay between supply and demand will be critical in determining the future trajectory of silicon metal prices and the health of the industry as a whole. With production likely to increase in the near term, the industry is still expected to rebound, depending on broader economic factors and market dynamics.

In conclusion, despite the current challenging situation for silicon metal production, the proactive measures taken by major producers could pave the way for recovery and growth in the industry.