November 9th News: Narrow range oscillation! The three giants are quoting 12000-12500 yuan/ton, and the market is waiting for a signal to break through! The raw material metal silicon is still rising! Despite continuous cost pressures, the DMC market has emerged from a differentiated trend - single factories on one side are holding on to low inventory prices, while downstream demand purchases are sporadically entering the market. Both long and short sides are engaged in a tug of war!
Core highlights: The listing prices of the three major companies have been fixed at 12000/12300/12500 yuan/ton, and the actual transaction range remains stable; The strength of raw material silicon metal has not changed, and cost support continues to strengthen; The supply-demand game is heated up: low inventory vs essential procurement, market trading is lukewarm.
Industry interpretation: The current market is in an awkward stage of "having a top and a bottom". Manufacturers want to raise prices, but their downstream purchasing capacity is limited; Wanting to lower prices is not allowed due to low raw material costs and low inventory. Both buyers and sellers are staring at each other, waiting for the industry conference next week to make a final decision!
In the short term, this price tug of war will continue. Focus on two points: first, the price trend of silicon metal, and second, whether clear guidelines can be released at next week's meeting. I suggest that all bosses maintain necessary operations and wait for the direction to become clear before taking action!
On October 29th, according to Reuters, specialty chemical giant Wacker Chemie announced that it is advancing a strategic adjustment plan called "PACE" globally to cope with the current severe business environment. The plan was launched in early October, with a dedicated team responsible for developing multiple measures, with a core focus on business growth, cash flow optimization, and cost control. The first batch of measures is expected to be implemented in the first quarter of 2026.
At present, the plans related to cash flow improvement and cost management have been preliminarily integrated and completed. The company stated that the specific scale of layoffs has not yet been finalized, and the management has begun negotiations with employee representatives to advance subsequent adjustments.
In terms of performance, the sales revenue for the third quarter of 2025 was 1.34 billion euros, a year-on-year decrease of 6% and a month on month decrease of 5%; EBITDA was 112 million euros, a year-on-year decrease of 23% and a month on month decrease of 2%; The EBIT decreased significantly year-on-year to 20 million euros, and the net loss for this quarter was -82 million euros (Q3 2024: 34 million euros).
From a regional perspective, in the third quarter of 2025, sales in all regions experienced a decline. The total sales in the Americas region amounted to 252 million euros, a year-on-year decrease of 8%. The sales revenue in the Asian region was 458 million euros, a decrease of 9% compared to the same period last year. The sales revenue in the European region was 553 million euros, a decrease of 3% compared to the same period last year.
In terms of business segments, the total sales revenue of the organic silicon business was 673 million euros, a year-on-year decrease of 7% and a month on month decrease of 6%. The main reasons for the year-on-year decline in profits are the weak product portfolio, exchange rate fluctuations, and lower prices. Polymer business - sales of 344 million euros, a year-on-year decrease of 6% and a month on month decrease of 5%.
Biotechnology business - sales of 93 million euros, a year-on-year decrease of 7% and a month on month increase of 6%. The reason for the year-on-year decline is the cyclical differences in the implementation of biopharmaceutical contract production projects.
Polycrystalline silicon business - sales of 197 million euros, a year-on-year decrease of 6% and a month on month decrease of 10%. The main reasons for the year-on-year decline are low prices, exchange rate fluctuations, a decrease in solar grade polycrystalline silicon production, and sustained low factory capacity utilization.
In contrast, the high-purity polycrystalline silicon business used for semiconductors has performed well. The department's EBITDA for this quarter was 18 million euros, a year-on-year decrease of 40% and a month on month decrease of 48%.
A spokesperson for Wacker Chemie pointed out that the severe economic situation and weak market demand are putting pressure on the entire industry, while the rapidly changing market and fierce competition from China further intensify the challenges. As a response, Wacker Chemie lowered its profit and revenue expectations in July this year, expecting sales in 2025 to be at the lower end of the original forecast range (5.5 billion to 5.9 billion euros), and full year EBITDA to be in the lower half of the original range (500 million to 700 million euros). In addition, the company has implemented approximately 90 layoffs at its Charleston, Tennessee production base during the same period.