Silicone 

This week, the price of DMC was stable and fell in some areas. Most silicone monomer producers had a strong desire to ship and the delivery of pre-sale orders was nearing the end. Terminal users in the downstream sectors were also willing to increase their purchases at the bottom price before the Spring Festival (Jan. 21-Jan. 27). The price of silicon metal and methyl chloride fell, while that of methanol rebounded, and the cost of DMC decreased. Following the moderately falling prices of raw materials, the price of OH polymer, gum and HCR fell, and that of silicone fluid remained stable. Before the Spring Festival, more customers in the downstream sectors might reduce orders from the rigid demand. It is expected that the price of silicone will be stable and lower in the short term.

Fumed silica

This week, the domestic fumed silica market was adjusted slightly. In terms of raw materials, the price of STC and MTCS was stable. The supply of domestic fumed silica was sufficient in the week, the demand for fumed silica was sluggish, and most enterprises in the downstream sectors purchased fumed silica on the rigid demand. Currently, the price of fumed silica in some enterprises is low near the cost line. It is expected that the fumed silica market will fluctuate weakly in the short term.

Silicon metal

This week, the domestic price of industrial silicon went down. For the supply, silicon producers in Sichuan and Yunnan provinces successively reduced production due to the approaching Spring Festival (Jan. 21-Jan. 27), the falling price of silicon and tight labor force caused by the epidemic. As of the week, more than 10 furnaces have been shut down in both provinces. However, the silicon producers in Xinjiang region had stable production and increased supply of silicon, like Hoshine and GCL, etc., they released capacity in succession and their production increment made up the output gap in Southwest China. For the demand, the sluggish terminal market led to the silicone and aluminum alloy enterprises to purchase silicon metal by the rigid need, with the less order and less market turnover. Meanwhile, the polysilicon producers significantly reduced prices and pushed silicon metal producers to decrease the prices.

Polysilicon

This week, the price of silicon wafer continued to fall. In terms of supply, enterprises greatly reduced the operating rate, with the insufficient cash flow. Two front-line enterprises significantly reduced the operating rate and specialized enterprises reduced the operating rate to varying degrees. In terms of demand, the prices in the whole industry chain continued to lower. At the battery end, the offering price of mainstream battery wafer was about RMB 0.8-0.85/W, down 26% month on month. Currently, the operating rate of front-line enterprises is between 70% and 80%. At the components end, the component orders signed in the early stage were quoted basically more than RMB 1.6/W.