The lack of metallic silicon due to the reduction of production in China has become a new obstacle to the restoration of the global economy. According to Bloomberg, the deficit caused a rise in prices for 300 percent in two months.
Silicon is used in everything: from computer chips and concrete to glass and automotive spare parts. Metal is also involved in the production of solar panels, medical implants, deodorants and many other things. Due to silicon deficiency, the Chemical Enterprise Elkem ASA and several other companies suspended Silicone-based products.
“If you have restrictions on the supply of silicon, then you have problems,” the head of the Romco Metals Commerce Department Kate Wildli. She noted that the metal can still be purchased, but called its market value very high.
Since the beginning of June 2020, the price of polycremia, which is used for solar batteries, has grown by 400 percent. Such a rapid rise in price can turn into an increase in the cost of panels and produced by them “clean” energy. As the economist Jenny Chase, solar producers are still faced with growing production costs.
Silicon deficit, the increased cost of oil and supply interruptions provide destructive impact on the markets and are concerned about the fact that prices will continue to grow, and the economy will go to the decline.
Metal silicon is obtained by heating in the sand and coke furnace. His usual cost ranged from 8 thousand to 17 thousand yuan (from 1,2 to 2,600 dollars) per ton. Now the price has grown to 67 thousand yuan ($ 1092). The reason for the sharp increase was the reduction of production in China, which fell 90 percent compared with the indicators of August. Industrial centers of the country were ordered to reduce carbon dioxide emissions in accordance with the new Green Peking Policy. In the enterprises there were also interruptions in power supply, which also affected the production of metals.