Silicone

DMC price kept falling this week. As the downstream players were still in the weak demand, some silicone monomer producers experienced the increasing inventory, struggling to make good selling at competitively low prices, which caused DMC price to decline further. The price of silicon metal continued to fall. The prices of methyl chloride and methanol fell slightly. The production cost of DMC reduced. The prices of OH polymer and gum also declined while that of HCR just was down a bit. The imbalance between the supply and demand of DMC may ease as the silicone monomer manufacturers will implement maintenance plans in the near future. The silicone price is expected to stay relatively low in the short term.

Fumed silica

This week, the domestic fumed silica market was stable, and the price of fumed silica stabilized. In respect of upstream raw materials, the price of silicon tetrachloride (STC) was basically stable,  and the price of monomethyltrichlorosilane (MTCS) fell slightly. Production cost of fumed silica was relative stable. The demand for fumed silica from downstream market players recovered slowly in this week, who bought it as is needed. The fumed silica market was in sufficient supply. The fumed silica market will stay relatively weak in the short term.

Silicon metal

The domestic falling price of silicon metal in this week with little transaction attributed to the following major reasons: the downstream customers did not have much demand for silicon metal, rendering it in a high level of inventory; Some of the silicon metal producers had shipment at low price, together with the mind borne by the downstream market who bought them only when the price rose. Specifically, the output of silicon metal by southwest China’s producers was decreasing somewhat, but the northwest producers made it in a relatively sufficient supply, thus the domestic supply and demand of silicon metal generally balanced. In the meantime, as the downstream demand for silicone and the aluminium alloy were still sluggish, silicone and the aluminium producers bought silicon metal on rigid demand. In the short term, the supply of silicon metal will exceed demand.

Polysilicon

This week found the price of polysilicon continuously falling in a slow manner with not too much transaction. The main reasons are as follows: On the one hand, some of the companies that traded last week at high prices did not sign new orders this week, and some of the high prices that accounted for a large proportion of the range were removed from the weighted average system, so the range of price drop this week increased on a week-on-week basis; On the other hand, the silicon chips producers had a relatively high operating rate. Due to the crucible in bad quality, the demand for polysilicon was relatively stable, and the increment and decrement in polysilicon supply mostly remained in balance. Given that the supply and demand of polysilicon were unchanged, the price trend of polysilicon will be basically as the same as the previous.