The silicone market is dominated by large stability and small movement. The DMC price of some manufacturers is reduced by 300 yuan. At present, the lowest quotation is 30200 yuan / ton; The quotation of raw rubber increased by 300-500 yuan again, with the quotation of 34300-34500 yuan / ton; The quotation of some rubber compounds is reduced by 500, and the quotation is 29000-30000 yuan / ton.


The metal silicon market continued to divide, and the price of low-quality metal silicon continued to rise, rising about 1000 yuan / ton yesterday. Chemical grade metallic silicon has fallen sharply again. At present, the average price of 421# East China for silicone production is 40500 yuan / ton, down 2000 yuan / ton.


On November 15, 2021, the national development and Reform Commission and other departments issued the notice on the benchmark level and benchmark level of energy efficiency in key areas of high energy consuming industries (2021 version), which did not include industrial silicon.


This policy has a great impact on the industrial silicon and silicone industries.


Metal silicon is not included this time. Although it does not mean that metal silicon has been removed from the hat of high energy consumption, in the short term, the government is aware that the current downstream demand for metal silicon does not match the current actual production capacity. At the same time, the downstream will vigorously develop the new energy photovoltaic industry. There is a large demand for metal silicon, and the production and production of metal silicon will not be strictly limited in the short term.


This policy also has a great impact on the price of metal silicon, which may be no less than the impact of the 90% reduction of metal silicon production issued by Yunnan development and Reform Commission, which led to the sharp rise of metal silicon price. Because it is not included in the list of key management and control of high energy consumption, the restriction on production and production in the later stage will be alleviated, the supply shortage will also be alleviated, and the price of metal silicon will fall. However, the production of chemical grade metal silicon is also greatly affected by raw materials. Among them, there is a shortage of suitable high-quality silica and clean coal. If the exploitation of silica ore is also relaxed to support the photovoltaic industry, the shortage of chemical grade metal silicon will be truly solved.


In the long run, although not included this time, for metal silicon, a typical high-energy consumption industry, the elimination of backward production capacity and industrial upgrading will still be implemented in the later stage, which will be mainly reflected in the gradual shutdown of enterprises with backward technology and small production capacity, and the improvement of the power requirements and environmental protection requirements of a single furnace with new production capacity, It is not the sudden implementation of the one size fits all policy of limiting production and shutting down in the short term.


Overall, in order to ensure the stable development of downstream photovoltaic industry and silicone industry, especially photovoltaic industry, metal silicon will no longer suddenly implement the one size fits all production restriction and shutdown policy, but gradually realize capacity replacement and industrial upgrading, which is of great significance for maintaining the stability of silicone product price.