The world is swept away by another price shock. The price of the basic building block of electronics increased by 300% – FonTech

There will be “only” a significant increase in the price of petrol and diesel, which can result in price “bullying” of burners, the price shock also affected metal made from the second most widespread element on Earth. The portal drew attention to the topic StraitsTimes.

Silicon prices are reaching new highs

As the portal informs Fastmarkets, silicon prices reached their new highs in the week to Friday, September 24, due to a reduction in its supplies from China. Restrictions on electricity supply in a country that is considered the world’s largest producer of silicon have been taxed worldwide.

In China, silicon prices rose by 65.2% until Friday, September 24. Just a week before this huge increase, there was a further increase in prices by 47%. In less than two months, the price of this much-used element has risen by a staggering 300%.

Silicon, which accounts for up to 28% of the Earth’s crust, is one of the most widely used elements in the world. It is used in almost everything, from computer chips, through solar panels to the automotive industry. The greatest impact of price increases is likely to be borne by the automotive industry, where silicon is widely used.

As silicon is also used as a raw material for the production of silicone, a water and heat resistant compound that is often used in medical implants, deodorants, sealants, etc., increasing silicon prices will have a very negative impact.

Silicon deficiencies are already evident in the field of solar energy. There, due to its lack, the price of polysilicon, the main component of photovoltaic panels, has risen by more than 400% since June 2020. The price of polysilicon on September 29 shot at around € 28, the highest amount since 2011.

The price is dizzying

According to the information available, the price of silicon in this century has been between 8000 and 17000 Chinese yuan per tonne, ie around 1070 to 2274 €. However, a regulation was later issued requiring producers in Yunnan Province in the south of the People’s Republic of China to limit production by up to 90% below the August level.

Serwan Asaad / UNSW

Problems with the supply of electricity have been signed under these restrictions. Yunnan produces up to 20% of all silicon in China, making the province the second largest producer. Due to these limitations, the price of silicon has risen to astronomical heights and currently stands at 67,300 yuan (9,000 euros) per tonne.

However, restricting the supply of electricity is not only threatened by Yunnan. Sichuan Province, which is the third largest producer with 13%, is also facing this problem. Xinjiang Province in northwest China, which is the largest producer, is still operating without major problems.

Along with the constant rise in the prices of oil, but also of metals such as aluminum and copper, the lack of silicon creates wrinkles at the head of many supply chains.