Silicone

This week, the price of DMC fell overall. Silicone monomer producers had relatively high operating rate, some of them reduced prices. The price of silicon metal rose, while that of methyl chloride and methanol stabilized, the production cost of DMC increased. In the week, as the price of raw materials went down and the downstream players focused on digesting inventory, the prices of OH polymer, gum, HCR and silicone fluid dropped. Amid the increasing production cost, the expectantly declining operating rate of monomer producers, coupled with growing number of DMC producers stopping selling, the silicone price is slated to be up in the short term.  

Fumed silica

This week, the domestic fumed silica market ran well. Leading enterprises raised price while the others maintained high price all the time. In terms of raw materials, the shortage of monomethyltrichlorosilane (MTCS) made its price continuously grow. The price of silicon tetrachloride (STC) was high. In the week, the fumed silica enterprises operated normally and the supply of fumed silica was sufficient and stable in the market. Some firms still stopped selling to raise price. The producers of RTV rubber and HCR in the downstream sectors bought fumed silica on the rigid demand. All the above factors render the price of fumed silica in adjustment in the short period.

Silicon metal 

The spot price of silicon metal rose and fell alternately. The big producers in Xinjiang region raised once more the price of #421 silicon metal, while those in Yunnan Province declined silicon metal price. On the supply side, the factories in Xinjiang restarted plants, and those in southwest China had the stable operating rate, with the sufficient supply of silicon metal. On the demand side, the startup of new polysilicon projects needed more silicon metal. Silicone producers reduced their price and purchased silicon metal on the rigid demand. The aluminium producers had stable needs on silicon metal. On the cost, the price of silicon coal increased, and the electricity price in southwest China went up after the rain season, leading to an increase in the production cost of silicon metal.

Polysilicon 

The polysilicon market price in the week declined slightly. First, the silicon wafers producers continued to decrease price and reduced output greatly, making the demand of polysilicon lessen. Second, as polysilicon capacity increased, the overhauled plants in September were restarted and new capacity was released by some enterprises, causing the polysilicon supply to grow. Third, the decrease in operating rates and demand from silicon wafer enterprises gradually made the inventory shift to polysilicon firms. Polysilicon companies will once again face inventory pressure.