JSC "Kremny" announced the forced suspension of production from January 1, 2026. The main reason was the global overproduction of silicon and the increase in imports at dumping prices to Russia. The "Kremny Ural" plant in the Sverdlovsk region will continue to operate, but at reduced capacity.
Rusal's plants are the only producers of refined silicon in Russia. The annual volume of the domestic market is about 45 thousand tons. According to the US Geological Survey (USGS), there is a surplus in the global market, which reduces the competitiveness of domestic producers.
Overproduction is exacerbated by global trade conflicts, accumulated reserves in China, and the desire of Chinese manufacturers to sell products at low prices. By the beginning of June, net shipments of silicon alloys and metal amounted to 18.1 thousand tons, 24% less than a year earlier.
The shortage of orders and falling prices threaten Russian microelectronics. The assembly of domestic chips faces problems with packaging due to supply restrictions.
Sanctions and import restrictions on equipment increase the vulnerability of Russian silicon producers. This forces companies to look for new technological solutions and alternative supply chains to ensure production stability.
The market situation may improve with the recovery of global demand, increased local investment, and modernization of production facilities. In the long term, Russian plants can increase efficiency and reduce dependence on imports, strengthening their position in the domestic market.
Experts say that to stabilize the market, it is necessary to consider measures to regulate prices, introduce import duties, and increase investment in the modernization of production facilities. These steps will help support domestic enterprises and mitigate social consequences.
