Executive Interviews

Asian Metal: Mr. Chen, thank you for accepting this interview. Could you please give us a brief introduction to your company?

Mr. Chen: Xinjiang Goens Silicon Industry Technology Co., Ltd. is located in the Zhundong National Economic and Technological Development Zone in Xinjiang. It is a core project developed by our group in response to the Belt and Road Initiative and China’s dual-carbon targets, aimed at completing the “green power–industrial silicon–polysilicon–new energy and new materials” value chain. The company was registered in 2017 with a registered capital of RMB 1.626 billion. Characterized by innovation leadership, digital manufacturing, ultra-low energy consumption and ultra-low emissions, our 200,000 tpy industrial silicon project was approved and commenced construction in March 2022. The first furnace was put into operation in June 2023, and all eight furnaces in Phase I reached full capacity in October of the same year. The project is equipped with a 30 MW waste-heat recovery power generation system and a 310 MW integrated wind power source-grid-load-storage project, enabling direct supply of green electricity. We have thus established ourselves as a benchmark modern green industrial silicon producer.

Asian Metal: What are the cost advantages and other strengths of producing industrial silicon in Xinjiang?

Mr. Chen: Our core cost advantages are derived from three key resource endowments in Xinjiang. First, abundant green power resources: currently, around 60% of our industrial electricity consumption comes from clean green power, with electricity costs calculated at below RMB 0.25/kWh, significantly lower than State Grid and Bingtuan tariffs. Second, a stable supply of high-quality reductants: the Hami region in Xinjiang offers high-grade silicon coal, eliminating the need for cross-regional procurement and keeping logistics costs low. Third, rich silica resources: Altay provides high-quality quartz pebbles with low mining costs, further optimizing our cost structure. In addition, we have three core competitive advantages. Technologically, we have filed 59 patents and built a comprehensive technology matrix covering processes, equipment and environmental protection, supported by a digital intelligent manufacturing platform that ensures production efficiency and quality stability. In terms of products, we were the first to launch 421 products compliant with futures delivery specifications by the end of 2024, and in 2025 we adopted an all-coal process to produce high-end low-boron, low-calcium grades such as 3301, 3303, 35015 and 4202, significantly broadening our sales channels. Regionally, Xinjiang hosts a cluster of leading downstream polysilicon producers with well-developed supporting facilities, resulting in outstanding logistics and collaboration efficiency.

Asian Metal: High-grade industrial silicon such as 4202 and 3303 is traditionally produced in southern China—Fujian, Yunnan and Sichuan—mainly using small furnaces, typically 12,500kVA. Your company produces these grades using 33,000kVA large furnaces. What challenges does this pose, and what are your current yields for 4202 and 3303?

Mr. Chen: The traditional challenges of producing high-end industrial silicon with large furnaces lie in achieving uniform material feeding and precise control of the reaction zone, with a high dependence on manual operation. As a result, large-scale production has typically been limited to small furnaces. We have addressed these challenges through three innovations: first, process optimization by refining material blending schemes; second, automation upgrades to achieve fully automated material feeding; and third, digital empowerment through an intelligent monitoring system that dynamically adjusts reaction-zone parameters based on real-time data, reducing reliance on manual intervention. Currently, the finished-product yield for our high-end grades—including 3301, 3303, 35015 and 4202—has reached about 80%, significantly higher than the industry average of 50–60%. Through standardized and refined management, combined with regional advantages, we have achieved lower overall costs while maintaining both high quality and economic efficiency.

Asian Metal: After falling below RMB7,000/t in late June, China’s silicon metal 553 prices rebounded and fluctuated upward in October and November, stabilizing around RMB9,000/t. However, futures prices fell back to around RMB8,300/t during December 8–10. What were producers’ costs in December, and how do you view the impact of futures trading on the silicon metal market?

Mr. Chen: In December, the tax-inclusive ex-works cost of industrial silicon 553 in Xinjiang was around RMB8,500–9,000/t, meaning current futures prices have fallen below the cost line. Price volatility has been driven by multiple factors. In June, China’s polysilicon anti-involution policies combined with expectations surrounding the end of the U.S. anti-dumping grace period dampened market sentiment. This, together with capacity releases during the southern hydropower season, triggered a panic-driven price decline. In the fourth quarter, downstream polysilicon production cuts and persistently high supply in northern regions pushed prices from around RMB 9,000/t down to RMB 8,300/t. I believe futures markets are a double-edged sword for the industry. In a bull market, they can help enterprises expand profits; however, in a bear market, the high-leverage nature of futures trading may drive prices below cost, exacerbating volatility. In response, we will strengthen spot-futures linkage and use hedging tools to mitigate risks and ensure stable operations.

Asian Metal: How do you expect silicon metal prices to perform in the first quarter?

Mr. Chen: Prices are expected to recover gradually in the first quarter, likely fluctuating around RMB 9,000/t. The key drivers are a sharp contraction on the supply side as Sichuan and Yunnan enter the dry season, with fewer than 20 furnaces currently in operation. On the demand side, while polysilicon output remains under pressure, demand from the silicone and aluminum sectors is relatively stable. Moreover, prices are already near the cost line, and sub-cost pricing is unsustainable in the short term. The market should gradually return to rationality.

Asian Metal: Your company has expanded into silicon metal exports in recent years. What is your current export volume, and who are your main customers?

Mr. Chen: We launched our export business in the second half of 2024. Currently, our combined direct and indirect exports exceed 7,000tpm. Our export markets include Southeast Asia and Taiwan, China, and we are gradually expanding into the United States, Bahrain, Dubai and Uzbekistan. Our customers are mainly large trading companies and downstream manufacturers. Thanks to our green, low-carbon attributes and high-end product quality, we have gained broad recognition in overseas markets. Going forward, exports will become a key growth driver, supporting a dual-circulation strategy of “high-end domestic market plus international markets.”

Asian Metal: Do you have any new development plans?

Mr. Chen: We will focus on three strategic directions. First, deepening the green transition by expanding the use of renewable energy such as photovoltaics and wind power, achieving full coverage of “green power + intelligent control + intelligent manufacturing,” and completing carbon footprint certification for industrial silicon by 2026. Second, extending the value chain by leveraging Xinjiang’s resource and policy advantages to explore deeper cooperation with high-end downstream sectors such as high-purity silicon and organosilicon, thereby enhancing product added value. Third, strengthening our ESG framework by optimizing processes to reduce carbon intensity, participating in the development of carbon footprint accounting standards, and continuously consolidating our advantages as a “National High-Tech Enterprise” and “Green Factory,” with the goal of building a globally leading green silicon-based new materials industrial base.

Asian Metal: Thank you for your valuable insights.

Mr. Chen: Thank you for the invitation.