recently silicone industry chain price central upward and intermediate DMC price has been since the end of July 12500 yuan / ton in November 28th rose to 16800 yuan / ton, up 34%, we determine the silicone industry bottoming out, as long as 5 years of winter has passed, the future is expected to continue to rise, the price is expected to return to DMC 20 thousand yuan / ton. The cost of the end, the rising price of energy prices will be the central uplift of silicone industry; the supply side, making some long-term loss capacity shut down, and constantly improve the industry concentration, and environmental protection has led to some capacity interruption of normalization, the degree of excess industry significantly ease. The demand side, the first half of the real estate demand for transmission over, demand will continue to improve. As prices rise, the industry is expected to usher in a wave of restocking market, prices can smooth down the conduction, the profitability of the industry will also increase, we also observed the DMC and raw material price has expanded over the first half of 1800 yuan / ton.

The cost of terminal energy price the price of central uplift of the silicone industry

The increase in coal and hydropower prices and transport costs will be the price of central uplift of the silicone industry. The organosilicon industry tremendous energy, energy costs accounted for more than 50% of the total cost, especially silicon metal production, power consumption per ton of silicon metal is about 12000kw.h, so the silicon metal are built in Yunnan, Sichuan, Xinjiang and other areas of cheap coal or electricity. With the arrival of the dry season, Yunnan, Sichuan price increase, the area of silicon metal production will decline. While the domestic coal price increases, the probability of 2017 will remain high, we expect the cost of electricity in Xinjiang will rise. While the transport of overloading tighter, increased transportation costs are transferred to silicone cost.