Silicone

DMC price was stable overall in this week and partially declined a bit. The major factories offered the stable price, with the rest of ones following the herd. The actual transaction price was approaching to the lowest in market. The price of silicon metal continued to fall. The prices of methyl chloride and methanol fluctuated slightly. The production cost of DMC still reduced. This week, the price of raw materials stabilized to drop. The prices of OH polymer, gum, silicone fluid and HCR all fell. As the silicone monomer manufacturers reduced the operating rate to larger extent, the imbalance between the supply and demand of DMC has somewhat eased. The silicone price is expected to stay in stability in the short term.

Fumed silica

This week, the domestic fumed silica market was still stable. The fumed silica firms offerred stable price. In respect of upstream raw materials, the prices of silicon tetrachloride (STC) and monomethyltrichlorosilane (MTCS) were in stability, so the production cost unchanged. The demand of fumed silica was still sluggish this week, and the overall operating rate didn't change much. The downstream customers bought fumed silica only on rigid demand. In the short period, the fumed silica market will be stable.

Silicon metal 

This week, the domestic price of silicon metal continued to decline. On the supply, the orderly release of new production capacity in Xinjiang and Inner Mongolia has compensated for the supply decrease in the Southwest region, so the overall supply in China was stable. For the demand, as the silicone market remained weak, silicone monomer producers were cautious about silicon metal purchase. Although the aluminium alloy market was fine, the aluminium alloy manufacturers bought silicon metal on rigid demand. The polysilicon producers tended to purchase less industrial silicon at low prices, as expected decline in polysilicon price. The falling price below the market expectation of futures and spots for silicon metal increased the wait-and-see sentiment. The silicon metal market presented obstacle sales and increasing inventory.

Polysilicon 

The price of polysilicon was still falling this week, attributed to the synchronous increase in output of both silicon chips and polysilicon, rendering the balanced supply and demand of polysilicon. Besides, the increasing price difference of polysilicon lay in that, for one thing, the downstream n-type market expanded somewhat, including the n-type polysilicon turning to be in demand of China, causing the increase in the price difference between n-type and p-type polysilicon; for another, the parts of new capacities were still on the way for increase, which led to the relative instability of product quality. As a result, there was an increasing supply of some low-quality polysilicon in market with its transaction price fairly different from that of the mainstream market price.