BEIJING (Asian Metal) 14 May 21 - Yunnan Yongchang Silicon Industry Co., one of major suppliers of chemical grade silicon metal 4-2-1 in China, cuts production of silicon metal on 12 May, and expects to produce around 4,000t in May, a source from the company reported to Asian Metal.

"As power supplier announced allocation of power supply in rainy season, we had to cut production in the regard. We suspended three furnaces last week, and we run only one furnace now. We have no certain plan to recover output level yet," the source disclosed. The company has two furnaces of 12,500kVA and five furnaces of 25,500kVA, and they mainly produce chemical grade silicon metal 4-2-1.

The company, with an annual production capacity of 107,000t of silicon metal and an inventory of 1,000t now, produced around 67,000t in 2020, and produced around 24,000t so far in 2021.

Current mainstream prices of Chinese chemical grade silicon metal 4-2-1 stand at RMB14,500-14,700/t (USD2,247-2,278/t) D/A 180 days delivered, unchanged from last week. Given limited supply, the source expects that the prices of Chinese chemical grade silicon metal would remain firm in the coming week.