Silicone 

This week, the price of DMC was stable except for rising in some areas. Silicone producers in Shandong province increased the price of DMC by RMB 400 per ton in a week. As downstream users moderately increased their purchases, silicone monomer producers signed more pre-sale orders. The price of silicon metal continued to fall, while that of methanol and methyl chloride rose, and the cost of DMC remained stable. This week, the prices of raw materials rebounded slightly, increasing the production cost. With moderately increased purchases in downstream sectors near the Spring Festival (Jan. 21-Jan. 27), the price of OH polymer, gum and HCR rose, while that of silicone fluid remained stable. It is expected that the price of silicone will be stable in the short term.

Fumed silica

This week, the domestic fumed silica market was adjusted slightly, and enterprise reduced the offering price. In terms of raw materials, the price of STC remained stable, while that of MTCS fell. This week, due to the approaching of the Spring Festival (Jan. 21-Jan. 27) and limited stocking of downstream enterprises, there were a few turnover orders. Some fumed silica enterprises shut down their plants for maintenance, and they reduced the offering price, but the overall inventory was still high. The prices of raw materials fell slightly, producing little impact on cost. It is expected that the fumed silica market will fluctuate weakly in the short term.

Silicon metal 

The domestic price of industrial silicon continued to fall this week. Recently, the downturn in the silicone and aluminum alloy markets led to the weak demand for industrial silicon. As of this week, there was no obvious sign of recovery in market transaction volume, and the silicon price continued to go down. In addition, with the approaching of the Spring Festival (Jan. 21-Jan. 27), the industrial silicon market was cold, with a few transaction volume in downstream sectors. Amid stagnation of market transactions, some producers and traders sold industrial silicon at a reduced price to return funds before the Spring Festival, making the metal silicon market weak and stable.

Polysilicon

This week, the price of silicon wafer rose after falling. In terms of supply, enterprises planned to raise the operating rate as the prices in the industrial chain stopped falling and the accumulated inventory of enterprises was exhausted. In the short term, some enterprises held a wait-and-see attitude amid the obvious game between upstream and downstream players. In terms of demand, the prices in the whole industry chain recovered. At the battery end, the offering price of mainstream battery wafer was about RMB 0.82-0.85/W, up 2.5% month on month, and the demand improved. At the components end, the strike price of component orders signed in the early stage was above RMB 1.6/W, while the price of some spot goods fell below RMB 1.5/W. However, in general, as the net profit of components was still high, and the price in the whole industrial chain stopped falling and stabilized. It is expected that the terminal demand will surge.