Silicone

This week, the price of DMC fell overall as the main producers reduced their DMC prices. The transaction volume at the low price of DMC increased. The prices of silicon metal and methyl chloride rose and that of methanol fluctuated slightly. The production cost of DMC increased. In the week, amid the decreasing price of DMC, the prices of OH polymer, gum and silicone fluid dropped. HCR price turned stable. As the production cost grew, the silicone monomer producers faced pressure on losses. In addition, the demand in the downstream sectors didn’t improve. The silicone price is expected, in the short term, to stay stable.

Fumed silica

This week, the domestic fumed silica market ran well. The enterprises in China mostly offered steady price and some of them raised price slightly. In terms of raw materials, the price of silicon tetrachloride (STC) was stable. The price of monomethyltrichlorosilane (MTCS) rose a bit due to the continuously increasing price and the tight supply of silicon metal. In the week, with the coming of the traditional “Golden September”, the demand of fumed silica increased in the downstream customers of RTV, HCR etc. Since the production cost was raised and the demand grew significantly, the price of fumed silica is expected to rise overall in the short term. 

Silicon metal 

This week, the domestic price of silicon metal rose largely. On the one hand, the spot inventory transferred to futures inventory, which alleviated pressure on factory inventory. The leading enterprises in Xinjiang raised their quotations once more, driving up the sentiment of raising price in the market. On the other, during the coming of the traditional peak season of “Golden September & Silver October”, the demand of silicon metal is improving. Both supply and demand of silicon metal showed increase as a whole within short period. Additionally, as the wet season will end in Q4, the insiders had expectations for an increase in production cost and a decrease in supply. It is projected that the price of silicon metal might rise slightly.

Polysilicon 

This week, the polysilicon price kept rising. The price difference between N-type and P-type polysilicon widened to RMB 12400 per ton. The continuous price rise of polysilicon is due to the previous price being at the lowest level, with the growing demand expectations in the terminal markets and increasing component production. The downstream customers raised passion for purchasing polysilicon. Those factors drove the polysilicon price to rise further.