Author Corrine Lin
Updated September 14, 2021

According to the notice on dual controls of energy consumption and intensity targets published by Yunnan Development & Reform Committee on Sept. 11, Yunnan provincial government will enforce silicon metal production control, ensuring the average monthly production of silicon metal manufacturers in September to December does not exceed 10% of the production in August. This means 90% cut of silicon metal production.

Yunnan, a province in southwestern China, produces 20% of total silicon metal production, the second largest following Xinjiang, which accounts for 40%. The dual-control policy will cause more than 200,000 MT of silicon metal production cut over the period from September to December in Yunnan.

While China has many idle capacities for silicon metal, silicon metal prices have been on the rise recently due to power shortage in southwestern region. Coupled with production cut in Yunnan, US imports of solar products wishing to source materials from regions outside of Xinjiang will take the first blow.