Silica purchasing will influence production

As report said, some of the silica mine suppliers stop working for over one month due to the environment inspection. Some of the silicon metal factory only stock up the silica for 40-60 day use. Now, they are almost run out of the materials, the purchasing staff was busy in finding the mine. While the labor cost is increasing, the silica purchasing cost is also increasing. What is worse, the quality of material goes down which makes the rate of silicon metal output reduced.

The influence is getting higher and higher. The silica delivery to factory price is higher than expectation in Sichuan area. The silicon metal factory is facing trouble to produce. Some of the factories suspend producing for observing. Still exist that some of the factories haven’t start producing when it is wet season. There is no plan to come back to produce so far. The silica supply problem is getting serious now. The difficulty maybe aggravate in the future.