Morgan Stanley: Tesla vehicles in Use to See Explosive Growth 

[Spot silicon metal prices edge higher in a narrow range before stabilizing]: In early August, the supply contraction from production cuts at silicon enterprises on the supply side and bullish price drivers from PV policy had already been realized in stages. Silicon metal futures shifted to narrow-range consolidation after prices rose. In August, fundamentals improved, with strong support below prices limiting downside room. On the upside, without new positive catalysts, upward momentum is insufficient to deliver a trending rally, and the tug-of-war between longs and shorts may shift prices to consolidation.

[SMM Silicone Weekly Review: Downstream Rigid Demand Orders Follow Through, Silicone Product Prices Continue to Show Strength] This week, China’s silicone DMC price center moved up, with quotations at 13,000-13,500 yuan/mt. Expectations of joint industry production cuts, combined with follow-through in downstream rigid demand orders, pushed silicone monomer enterprises to raise quotations, and low-priced supply in the market decreased. Supply side, the 50% joint production cut plan set at the August industry meeting continued to advance, but implementation intensity varied among enterprises, and the operating rate in early August remained above 60%. In terms of order taking by monomer enterprises, they currently have sufficient pre-sale orders and no sales pressure, with a few enterprises’ pre-sale orders already booked through early September; industry pre-sale orders vary from late August to early September. Monomer enterprises’ siloxane inventories are at low levels, and enterprises hold a mostly bullish sentiment. Overall, China’s short-term DMC price center is expected to gradually move up from 13,000 yuan/mt to around 13,500 yuan/mt.

[SMM Analysis] Futures Weakness and Sluggish Off-Season Demand; Stainless Steel Inventory Posts Slight Buildup and Remains Stable on Limited Arrivals SMM, August 13 – This week, stainless steel social inventory shifted from prior destocking to a slight buildup, with the overall inventory level basically stable and off-season inventory pressure rising at the margin. Total inventories in the two core markets of Wuxi and Foshan edged up from 915,200 mt on August 6, 2026, to 915,900 mt in the latest period, up 0.08% WoW. The buildup was modest, and overall inventory maintained a stable trend. This week, the stainless steel market continued to follow the traditional off-season pattern. Early recovery signals ahead of the September-October peak season had yet to emerge, and rigid demand from end-users remained weak. During the week, SS futures pulled back repeatedly. Wait-and-see sentiment strengthened among traders and downstream users, and most downstream end-users maintained a need-based, hand-to-mouth purchasing pattern. Spot transactions in the market were generally weak, and the destocking efficiency of cargoes was low, creating the core fundamental pressure behind the inventory buildup. On the supply and distribution side, there were temporary offsetting factors. At the beginning of this week, weather disruptions from Typhoon Dolphin constrained logistics shipments and the pace of spot arrivals in east China. The pace of market supply replenishment slowed, effectively offsetting the incremental buildup caused by weak demand, leaving social inventory only slightly higher this week and broadly stable overall. Overall, weak end-use demand in the off-season and weaker futures that dragged on market transactions were the core causes of this week's slight inventory buildup. Meanwhile, typhoon-related disruptions reduced arrivals and effectively curbed any sharp inventory accumulation, ultimately resulting in a slight buildup with overall stability. At this stage, the off-season fundamentals of stainless steel still dominate the market, and end-use demand shows no signs of recovery yet...