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Silicon Market Analysis (Feb. 20, 2023-Feb. 26, 2023)

Silicon Market Analysis (Feb. 20, 2023-Feb. 26, 2023)

Editor:ACMI-Silicon Jul-26-2023

Silicone 

The price of DMC rose steadily in this week, at the beginning of which the DMC price rose driven by the pre-sale orders of some silicone monomer producers in the early stage, but after that, the price of DMC turned stable as the trading of new orders weakened and the downstream players reduced their enthusiasm for pursuing price increase. The price of silicon metal was stable while those of methanol and methyl chloride rose slightly, but the cost of DMC remained stable. This week relatively saw the rising price of raw materials, raising the production cost to have caused the price of OH polymer, gum and silicone fluid rising, while that of HCR was stable. As the downstream players started to digest the inventory, it is expected that the price of silicone will be stable in the short term.

 

Fumed silica

This week, the domestic fumed silica market saw stability. Some enterprises offered stable prices. In terms of raw materials, although the MTCS was in a short supply, the new production capacity kept increasing, making the price relatively stable. The price of STC was steady. Downstream players were mainly in demand for fumed silica. Currently, the general environment is favorable for the market, the supply of fumed silica is abundant. The fumed silica market is expected to remain stable in the short term.



Silicon metal 



This week, the domestic price of industrial silicon remained stable but the transaction barely occurred. On the one hand, the replenished procurement in the three major consumption areas was completed, now it is mainly based on the orders for rigid demand, and some traders continued to ship in small batches due to the capital turnover. Downstream firms expect the low price of industrial silicon to fluctuate. On the other, due to the recent shortage of power supply in Yunnan province, some electrolytic aluminum producers were informed of power limits, even some electrolytic cells production ceased. The power limit policy may extend to other industrial fields like silicon smelting. Meanwhile, the power charge in southwest China during the dry season is higher than that of previous years. In expectation of high cost and power shortage, the silicon producers have a strong mood of keeping goods in hands.

 

Polysilicon 

This week, the average price of polysilicon was stable. The price difference was large between the orders signed by various polysilicon producers. Some orders were traded at high prices in the previous week while some done at low prices. The reasons include as follows: first, the domestic polysilicon enterprises basically completed to sign orders in February, and most of the new orders signed this week were long-term or short orders with small amount of turnover at stable prices; second, after the silicon wafer producers raised operating rate, their demand for polysilicon increased significantly, which not only digested the polysilicon output within the current month, but also reduced part of the inventory. The inventory of polysilicon is less than that before this Spring Festival (January 21) now, so the price of polysilicon is still stable in the short term.