Last week, DMC prices continued to decline. The prices of silicon metal and methanol have fallen. Partial unit restarts, overall industry operating rate slightly increases, and supply is relatively strong. Downstream demand has not significantly improved, and only some customers have moderately replenished inventory at low prices, with cautious procurement. The bearish sentiment is enveloping the market, and upstream and downstream enterprises are deeply engaged in a game. The current mainstream quotation for DMC is 10800-11500 yuan/ton, with an actual average transaction price of around 10800 yuan/ton.
Last week, the prices of DMC raw materials continued to fall, coupled with weak recovery in downstream and terminal demand. As a result, the prices of 107 rubber, raw rubber, and silicone oil gradually followed suit, while the prices of mixed rubber remained weak and stable. The "Golden September" is approaching, and the downstream demand for temporary replenishment is expected to increase. The price of organic silicon market may usher in an opportunity to stop falling and stabilize.
Last week, the market for gas-phase silica was in a weak stable state, and there was no adjustment in enterprise quotations. However, due to increased shipping pressure, there was a phenomenon of bidding. The raw material, methyltrichlorosilane, maintains a high level.
Last week, downstream silicone rubber and rubber mixing enterprises of fumed silica were affected by demand and price suppression, resulting in limited production and mainly consuming existing inventory for fumed silica, leading to a weak market transaction atmosphere. In the short term, weak downstream demand has a certain drag on the gas silicon market, but the price of raw material A is at a high level, and the cost has some support in the market. It is expected that the price of silicon gas will fluctuate.
Last week, the silicon metal market showed a volatile downward trend. Under the interaction between the suppression of supply side production increase and the support of demand side recovery, spot prices have experienced wide fluctuations, with a fast pace of ups and downs, and most practitioners in the industry still have weak confidence. On the supply side, large factories in the north are gradually resuming supply, while the southern region continues to promote production resumption due to cost reduction, resulting in a continuous increase in the number of furnaces opened and an overall increase in output. On the demand side, the increase in polycrystalline silicon production drives the demand for metal silicon procurement; The local device for organic silicon has restarted, resulting in a slight increase in demand; The aluminum alloy factory is operating smoothly, and the demand for silicon metal is stable. Overall, the silicon metal market is showing a dual growth pattern of supply and demand, with significant inventory pressure remaining. But recently, driven by macro sentiment, the overall performance of silicon prices has been relatively firm. It is expected that the short-term price of silicon metal will continue to fluctuate.