This week, the transaction price of DMC kept falling in the result of the weak demand. The price of silicon metal dropped. The price of methyl chloride rose, and that of methanol stabilized. The production cost of DMC reduced. With the falling price of raw materials, the prices of OH polymer, gum, HCR and silicone fluid were all in decrease. In the case that the major silicone monomer producers lowered price and the downstream demand was sluggish and the supply of silicone exceeded demand, the silicone market price is expected to remain low in the short period.

The domestic transaction price of fumed silica fell a bit. The price of monomethyltrichlorosilane (MTCS) rose and that of silicon tetrachloride (STC) was relatively high due to the tight supply. In the week, fumed silica producers ran at a high operating rate, but demand from the enterprises of RTV rubber and HCR was unchanged, with the limited market transaction volume. Amid the increasing supply, the weak demand of downstream sectors, and the raised production cost of raw materials, the fumed silica market price is slated to adjust in the short term.

The price of silicon metal spot continued to drop this week, with few transaction volume. Concerning the supply, the supply of silicon metal in the south decreased further, while that in the north remained relatively stable. Except the leading enterprises located in Xinjiang that reduced production, other enterprises in the northern region maintained stable production. As for the demand, silicone monomer producers are likely to have decreasing demand for silicon metal in the near future as some of them reduced operating rate due to the device overhaul. Polysilicon companies had weak willingness to buy silicon metal since the selling price of polysilicon products were rather low.   

This week, both the producers and the purchasers of polysilicon had few transaction volume. Neither N-type rod-shaped polysilicon nor P-type one was ordered, except for a few orders of N-type granular polysilicon made, owing to the downstream players’ weak passion for purchase. In the late 3 weeks, the majority of polysilicon producers had the overstock with only a few sales. With regard to supply side, polysilicon companies ran at the full capacity currently. In respect of the demand, silicon wafer manufacturers have expectations for production reduction, with the weak demand for polysilicon in the short term. On the cost side, the production cost of polysilicon reduced as the price of silicon metal kept falling.