Silicone

This week, the price of DMC continued to fall. At the end of July, silicone monomer producers showed a strong enthusiasm for shipment because of a small number of pre-sale orders. As the main silicone monomer producers lowered the price of  DMC, the other ones followed suit. The price of silicon metal was  temporarily stable. The price of methyl chloride fell after rising, and that of methanol went down slightly. The production cost of DMC was generally unchanged. Given the situation, the prices of OH polymer, gum and silicone fluid dropped while the price of HCR was in stability. Silicone monomer producers was increasing the production reduction due to losses and the historical low price. The silicone price is projected to stabilize in the short term.  

Fumed silica

This week, the domestic fumed silica market was sluggish. Some enterprises in China offered decreasing prices, and the mainstream transaction price of fumed silica fell overall. In terms of the raw materials, the price of silicon tetrachloride (STC) dropped slightly due to the oversupply. The price of monomethyltrichlorosilane (MTCS) was adjusted. The downstream customers still had sluggish demand for fumed silica in the week, they bought fumed silica based on their need, resulting in a little trading volume made. As the fumed silica was still in oversupply, the enterprises faced pressure of high inventory and some of them had to shut down devices for overhaul. Since the supply & demand imbalance is impossible to improve in the short period, the fumed silica market is expected to be adjusted.   

Silicon metal

The overall silicon metal market remained stable this week, with a significant difference in the price of silicon metal between the North and the South, China. Large producers in the North had the low price, while the factories in the South showed a strong enthusiasm for maintaining the current price due to the higher production cost. The delivery of order 421# in Yunnan reduced the inventory, resulting in a slight increase in spot prices. In addition, although the local factories shut down for two weeks due to the Universiade held July 28 - August 8 in Chengdu, it has minimal impact on spot prices as their monthly output accounts for only about 10% of the domestic total. On the whole, the future price of metal silicon will mainly be stable.  

Polysilicon

This week, the polysilicon price kept rising. The reasons are as follows: on the one hand, the overall inventory of polysilicon decreased, and the remaining inventory was within a reasonable range; on the other, the supply of polysilicon was tightened by phases as individual enterprises had unplanned overhaul of devices in recent days. Besides, the production in two local enterprises was affected to some extent by the power supply during the Universiade held in Chengdu. Furthermore, as the batteries and silicon wafers producers operated at a full capacity, the terminal markets presented improving demand for polysilicon. In a word, the above factors drove the price of polysilicon to go up in the short term.