SHANGHAI, Aug 22 (SMM) - As of last Friday, the DMC Prices stood at 20,800-21,000 yuan/mt, up 1,850 yuan/mt or 9.7%.
In mid-August, due to the power rationing in Sichuan and the pandemic in Xinjiang, the raw material supply was tight. The prices of 421# silicon metal continued to rose and as of August 19, the prices of 421# silicon metal at Huangpugang stood at 22,700-23,100 yuan/mt, up 3,400 yuan/mt on the week. Due to the increase of cost, silicone monomer companies raised the DMC quotations.
In terms of the cost, the power rationing in Sichuan willlast until August 25, hence the silicon metal prices are expected to further increase.
In terms of supply, the operating rates of monomer companies declined last week and some large-sized silicone factories suspended the production due to the pandemic in Xinjiang. Three enterprises suspended the production and two enterprises reduced the production, affected total silicone capacity of 1.36 million mt/year.
In terms of the demand, the transactions increased as cargo holders tended to restock amid the bullish outlook. However, the actual demand did not improve.
Overall, due to the power rationing the increase in cost, the silicone prices increase. However, the supply and demand did not improve and the DMC prices are expected to remain stable this week.
