Silicone

The transaction price of DMC continued to surge this week due to the decreasing supply caused by overhaul in some silicone monomer producers and the increasing demand of the downstream customers. The price of silicon metal was down a bit, that of methyl chloride was up and that of methanol fluctuated narrowly. The production cost of DMC was raised. In this week, the prices of OH polymer, gum, HCR and silicone fluid rose due to the growing price of raw materials leading to an increase of production cost. In the case of higher production cost, the reducing demand of customers and the relatively low inventory of silicone monomer factories, the silicone market price is slated to stabilize in the short term.

Fumed silica

This week, the domestic fumed silica market ran well. The leading enterprises raised quotations, followed with the same action of partial companies, while others didn't adjust their quotes for the time being. Affected by a rise in silicon metal price and a fall in the operating rate of silicone monomer producers, the price of monomethyltrichlorosilane (MTCS) increased after a decrease. The producers of RTV rubber and HCR purchased fumed silica on rigid demand, with the flat transaction volume. The fumed silica market price is expected to move sideways amid the rising MTCS price and the weak demand in downstream sectors.

Silicon metal

This week, the price of silicon metal spot was down slightly. Concerning the supply, some silicon metal producers maintained low operation rate in Xinjiang region, the high power cost might affect production of partial enterprises. The producers in southwest China had low operating. As regards the demand, silicone players stocked up silicon metal by phases and the leading companies raised the silicone price, resulting in the growing demand of silicon metal. The polysilicon producers were in normal operation, with new capacity released as planned, making the silicon metal demand increase slightly. Aluminium alloy company finished stocking, purchasing based on their needs, before the Spring Festival (on February 10).    

Polysilicon

The prices of both N-type polysilicon and P-type one were stable this week. The lowest price of N-type polysilicon fell moderately. The new contract price of polysilicon was unchanged. The majority of enterprises, subjected to cost pressure, couldn’t accept the falling price of polysilicon. As downstream ingot mono pulling company changed the production from P-type polysilicon to N-type one, polysilicon producers were actively adjusting production strategies. On the whole, N-type polysilicon products were short of supply, while those of P-type one were in sufficient supply. Recently the ingot mono pulling firms continued reducing operating rate, it’s expected that the customers will demand less of polysilicon in the near future.