China's national silicon metal consumption in the first half of this year hit 309,400 mt, up around 5% from H1 2011, amid higher demand from key downstream silicon processing sectors, the silicon branch of China Nonferrous Metals Industry Association said Friday.

"Demand growth in the first-half of this year came mainly from the aluminum alloy, as well as the organic silicon sectors," Xie Chen, a silicon analyst with the silicon branch of CNIA said.

The aluminum alloy and organic silicon sectors together accounted for 74% of the H1 domestic silicon metal consumption, or 230,000 mt, CNIA data showed.

In spite of the slightly higher H1 demand, CNIA forecast China's silicon consumption in 2012 to be either flat or slightly lower than 2011, amid anticipated weaker demand from the domestic polycrystalline silicon sector. China consumed 610,000 mt of silicon metal in 2011, up 27% from 2010.

In comparison, silicon metal consumption by the domestic polycrystalline silicon sector was 58,400 mt in H1 2012, down 14% year on year.

"Most medium-size and small polycrystalline silicon plants are currently still shut, [following closures in the fourth quarter of last year,] which has trimmed demand for silicon metal," Xie said.

"Although the larger polycrystalline silicon plants are still running, their silicon metal consumption ratio is comparatively smaller than the small and medium-sized ones, as their cold hydrogenation system can consume less silicon metal," he said.

The small and medium-sized polycrystalline silicon plants consume 2.4 mt of silicon metal to produce 1 mt of polycrystalline silicon, while the larger ones need just 1.3 mt silicon metal, according to CNIA.

Meanwhile, China produced 550,000 mt of silicon metal in H1 2012, down 11% year on year, CNIA data showed. Yunnan, Sichuan and Guizhou together accounted for 56% of the total H1 production volume.

CNIA attributed the fall in production to low plant operation rates in the first half of this year. The association did not elaborate on the total output estimate for 2012.