Recently, fluctuations in upstream raw material prices in the organic silicon industry chain have had a profound impact on downstream markets. Especially the stable and bullish trend of DMC prices not only reflects the contraction strategy of the supply side, but also indicates the beginning of cost transmission effects. Although the prices of silicon metal and methanol, as key raw materials, have shown a downward trend, they have not been able to prevent the rise of DMC prices, mainly due to strict control on the supply side and expected growth in downstream demand.
With the continuous rise in raw material DMC prices, the cost push effect will gradually emerge, driving the prices of products in the entire organic silicon industry chain to steadily rise. Downstream products such as 107 rubber, raw rubber, and mixed rubber may remain stable in the short term, but in the long run, the accumulation of cost pressures will lead to price increases for these products to adapt to the increase in raw material costs. In addition, silicone oil companies have also begun to partially raise prices to cope with cost pressures, demonstrating the gradual diffusion of cost transmission effects in the industry chain.


 It is expected that in March, with the slight recovery of polysilicon supply and the mismatch between downstream load increase, the market will continue to focus on destocking, and price stability will become the mainstream of the market. In the future, the supply and demand dynamics of the metal silicon and polycrystalline silicon markets will continue to affect the price trends and market expectations of the upstream and downstream industrial chains.
On the supply side, the northern region has stable production, while the southern region is operating at a low level, with limited overall production changes; On the demand side, there is a sharp contrast between the maintenance of organic silicon monomer plants and the stable production of polycrystalline silicon plants. The gradual resumption of production in aluminum alloy plants provides certain support for the demand for metallic silicon.