Silicon has now been added to the total deficit of everything. According to the source, the reduction in silicon metal production in China has led to a 300% increase in raw material prices in less than two months.
The decline in production is due to China’s large-scale policy to reduce energy consumption in the country. In particular, in Yunnan province, manufacturers were ordered to cut production by 90% from the August level. Moreover, companies should have such volumes from September to December.
Such an impressive rise in the price of silicon, as well as its shortage, led to the fact that some companies have already suspended the production of their products. For example, the Norwegian Elkem ASA did so.
At the same time, silicon is used in a wide variety of areas, from concrete production to microcircuits. Although it is produced primarily from ordinary sand, the decline in production in China has been so dramatic that it is now affecting the whole world. And given the dependence of various industries on silicon, the situation may worsen significantly in the near future.
For example, in the automotive industry, silicon is actively used in the manufacture of cylinder blocks of modern engines and other parts. And the auto industry is already under the blow of a chip shortage.
According to the source, for most of the last century, the price of metallic silicon has fluctuated between $ 1200-2600 per ton. Now the price has risen to $ 10,500.
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