Silicone

This week, the price of DMC stopped rising but turned stable. Since a great deal of goods was filled last week, the downstream players shifted to digest the inventory. Silicone monomer producers showed much passion for price rise. The price of silicon metal rebounded. The price of methyl chloride dropped and that of methanol adjusted slightly. The production cost of DMC was going up. In the week, amid the stable price of raw materials and the reduction in production cost, the prices of OH polymer, gum, silicone fluid and HCR were mostly in stability. As some silicone monomer producers restarted their devices recently, the pressure of DMC supply increased accordingly. The silicone price, in the short term, is expected to be stable, but might fall at the end of August.

Fumed silica

This week, the domestic fumed silica market stabilized. The enterprises in China mostly offered steady prices, individual ones increased price slightly. In terms of the raw materials, the price of silicon tetrachloride (STC) was stable, while that of monomethyltrichlorosilane (MTCS) continuously rose, driven by production reduction in silicone monomers plants. In the week, the fumed silica enterprises stayed in low operation rate, resulting in less supply of market. The pressure in inventory reduced. The downstream firms raised enthusiasm for filling goods as traditional "golden September and silver October" approach, but their relatively low operating rate coupled with the slowly recovery of terminal market made the market trading still flat. Amid the rising production cost as well as the oversupply in market, the fumed silica price is projected to adjust in the short period.

Silicon metal 

This week, the domestic spot price of silicon metal was different from the futures price of silicon metal. The spot price of silicon metal was up. The major producers in Xinjiang increased the price of silicon metal last week, the enterprises in northwest China had more orders than before, which rendered the inventory below the normal. Some firms in the southwest China have signed futures contracts, resulting in less market circulation. The downstream enterprises gradually replenishing inventory and producers having low inventory were main factors for a rise in the silicon metal spot price. Currently, the futures price of silicon metal are higher than the spot price. However, the futures price showed a downtrend due to delivery pressure and is expected to be close to the spot price.

Polysilicon 

This week, the polysilicon market price continued to rise a little. The price increase of P-type polysilicon was more than N-type one. On the one hand, silicon wafer producers kept increasing prices. More silicon wafer enterprises resumed production at a full capacity, driving the polysilicon price up. On the other, the inventory of polysilicon companies were going down, the current output mostly met needs for the previous orders. There was less spot transaction involving N-type polysilicon and the downstream customers were willing to purchase P-type one by raising the transaction price slightly. In summary, the downstream companies increasing their purchase of P-type polysilicon caused its price to further rise.