Known as the “price king” of the chemical industry this year, on the first day after the weeklong National Day holiday, the price quote of DMC reached a high of RMB 64,200/MT. Then in just half a month, due to easing of power restrictions and sluggish downstream demand, the silicone market began a downward trend. The current DMC market price is RMB 52,000/MT, down RMB 12,200/MT in just half a month—a decrease of 20%.
Crystalline silicon appeared in the top ten list of declining products for many days, with a decrease of more than 20%. As of now, chemical grade 421 crystalline silicon at Huangpu port was quoted at RMB 60,500~67,500/MT, down RMB 2,500~3,000/MT from the beginning of October.
In the previous period, influenced by the Dual Control policy for energy consumption, crystalline silicon production capacity was limited, and the price rose sharply, especially chemical grade 421 crystalline silicon, which reached RMB 86,400/MT.
Also due to recent electricity production restrictions, production cuts in downstream segments such as aluminum alloys and polysilicon have been heavy as well, reducing demand for silicon. Recent metallurgical grade crystalline silicon prices have plummeted precipitously. Metallurgical grade 553 prices have dropped from a peak of RMB 55,000/MT to RMB 28,000/MT, a decrease of 50%. As the various grades of crystalline silicon are produced using swing capacity, chemical grade crystalline silicon prices are high, and there is an increase in the number of manufacturers switching to chemical grade 421 crystalline silicon recently, which has alleviated the tight supply.
In the face of the growing shortage of coal and electricity, the relevant national government departments proposed to promote increased production of coal mines as soon as possible. From the current situation, it is clear that the increase in coal production has achieved obvious results. In mid-October, national coal production exceeded 11.5 million MT/day, an increase of more than 1.2 million MT/day from mid-September. Along with the easing of power restrictions and production cuts, silicone production began to increase.
With the restoration of power supply, downstream demand will improve to some extent, but the overall growth rate may gradually decrease.
In the short term, the silicone market is expected to remain at a high level.
Source: China Chemical Industry News