Metallic silicon price rises 300% due to production cuts by Chinese manufacturers

Metallic silicon is used in various materials, including semiconductor substrates. It is reported that the price of this metallic silicon has risen by 300% in less than two months, triggered by a production cut in China, which is a major producer.

Silicon's 300% Surge Throws Another Price Shock at the World --Bloomberg

Despite the abundance of raw materials such as sand and clay on the earth, the price of metallic silicon has skyrocketed in recent years due to the rapid increase in demand and the decrease in production. China, a major producer of metallic silicon, is striving to reduce power consumption through electricity regulations, and maintains much lower production than usual.

Yunnan, China's second-largest producer, has been ordered to fall 90% below its August production levels from September to December 2021, which will bring the price of metallic silicon up to about 1 per ton. It is said that it has risen from 17,000 yuan (about 290,000 yen) to 67,300 yuan (about 1.16 million yen).

Metallic silicon, or raw silicon, is used in a variety of products such as semiconductors, glassware, solar panels, and medical implants, and many industries are expected to be affected by rising prices. Prices of aluminum alloys that use silicon and magnesium, which is affected by electricity regulations, are also rising.

Keith Wildy, head of trading for aluminum alloy maker Romco Metals, said, 'We're having problems with a shortage of silicon, and although we have some supply, we're trading at a clearly higher price. I have. '

The shortage of silicon is affecting not only the manufacturers that use silicon, but also the entire supply chain, including carriers. Yang Xiaoting, an analyst at Shanghai Metals Market, a market analyst for the metal industry, said, 'The price of metallic silicon is expected to remain high until the summer of 2022. Demand for electronic devices is rising. Therefore, the supply shortage will continue even if the power regulation is lifted. '

in Hardware, Posted by log1p_kr