Silicone 

This week, the price of DMC (dimethylcyclosiloxane) fell steadily. There was no significant demand increase in downstream terminal players as they didn't consme all inventory of raw materials. New orders for DMC were not much made, the price offered by some silione monomer producers fell actually. The price of silicon metal and of methyl chloride dropped, and the methanol price increased slightly due to the rise of DMC production cost. The mainstream DMC price was RMB 16,800-17,300 per ton. As the raw materials price decreased, reducing the production cost, the prices of OH polymer and gum also decreased. The price of silicone fluid was stable, but that of HCR dropped. With the DMC market in more supply than demand, the silicone price is expected to be stable but a bit down in the short term.

Fumed silica

This week, the domestic fumed silica market was stable. In respect of upstream raw materials in stable cost, the price of silicon tetrachloride (STC) and that of methyltrichlorosilane (MTCS) stabilized. The downstream players bought fumed silica on rigid demand still. The fumed silica market was in a relatively sufficient supply, and the producers focused on reducing the inventory. The fumed silica market will stay relatively weak in the short term. 

Silicon metal

This week, the price of silicon metal turned to fall. The FOB price of chemical grade silicon metal 421# at Huangpu Port was RMB 18,300-18,500 per ton, down RMB 150 per ton from the previous week. The supply of silicon metal in spot market was still abundant, but the downstream players showed much less enthusiasm for enquiring about the price. The aluminum alloy firms had basically stable operating rate, who generally maintained their purchasing silicon metal in accordance to the demand. The silicone market was weakening. The very high cost in some regions made enterprises unprofitable, but there were still some market transactions made at low price. The price of silicon metal fell slightly.

Polysilicon

Silicon wafer price rose slightly this week. On the supply matter, monocrystalline silicon manufacturers maintained their high operating rate under the condition of rich profits, and quartz crucible facing quality problems limited some enterprises from high operating rate. On the demand side, expansion of battery production is expected to drive demand, and module production began to gradually increase at the end of the first quarter of 2023. Concerning battery, the mainstream price of battery chips remained at RMB 1.08/W. The cell chip firms expanded capacity beyond expectations, driving the demand of polysilicon. As to the module, the mainstream price remains between RMB 1.7-1.75/W currently. The downstream terminal demand is expected to further increase as domestic projects and overseas ones are launched at the end of the first quarter of 2023.