I. Core Price Trends: DMC Prices Fluctuated Downward, with Significant Regional Price Differences
National Average Price Fluctuations
September 1: Mainstream organic silicon DMC quotes nationwide ranged from 10,300 to 13,000 yuan/ton, with significant price differences in Shandong due to supplier differences. For example, Luxi Chemical quoted 10,300 yuan/ton, while Shandong Dongyue Chemical offered as high as 13,000 yuan/ton.
September 7: Prices generally fell back to 10,300-11,000 yuan/ton, a decrease of approximately 3.8%-20.8% from the beginning of the month. Luxi Chemical maintained its price at 10,300 yuan/ton, while some high-end quotes (such as Shandong Dongyue) were not updated, indicating a shift in market trading towards the lower end of the price range. Regional Market Divergence
Western Market: On September 5th, the mainstream DMC quoted price in western China was 11,000-11,500 yuan/ton, but actual transaction prices were closer to the lower end (11,000 yuan/ton), indicating cautious downstream purchasing and weakened supplier bargaining power.
Shandong Market: As a major production area, prices fluctuate frequently. On September 4th, Luxi Chemical lowered its price from 10,500 yuan/ton to 10,300 yuan/ton, reflecting inventory pressure and weak demand.

II. Analysis of Price Drivers
Weakened Upstream Cost Support
Silicon Metal Prices Declined: In September, silicon metal prices in Xinjiang were quoted at 8,500 yuan/ton (close to the cost line), down approximately 300 yuan/ton from August. High social inventories (approximately 450,000 tons, covering two months of industry production) coupled with ample inventory at photovoltaic companies put pressure on silicon metal prices, indirectly weakening the cost support for silicones. Declining electricity costs: Electricity prices in the southwest decreased by 0.1 yuan per kWh during the flood season, reducing the cost of metallic silicon by approximately 35 yuan per ton, further reducing organosilicon production costs.

Supply-demand imbalance
On the supply side: The industry's operating rate is approximately 72%, down 14-16 percentage points from January-February. However, the production reduction (approximately 200,000 tons) has not effectively depleted inventory. Suppliers are proactively reducing prices and offering promotions to recoup capital.
On the demand side: Sluggish demand growth in downstream industries such as silicone and silicone oil, coupled with trade barriers affecting the export market, has led to overall purchases falling short of expectations.

Market Sentiment and Trading Strategies
Suppliers are clearly adopting a "price-for-volume" strategy, increasing the scope for negotiation on actual orders. For example, while DMC quotes in the western market remain at 11,000-11,500 yuan/ton, actual transaction prices can drop to 11,000 yuan/ton.
Traders face slim profit margins (for example, Shanghai traders earn only 150 yuan per ton) and rely on volume to maintain operations, further intensifying price competition.

III. Future Trend Outlook
Short-term (1-2 weeks): Prices may continue to fluctuate weakly, with the mainstream quote range shifting downward to 10,000-11,000 RMB/ton. If metal silicon prices continue to fall, cost support for organosilicon will further weaken.
Medium-term (1-3 months): The fulfillment of the traditional peak demand season (September and October) requires careful attention. If downstream industries (such as construction and electronics) begin to replenish inventory, prices may rebound temporarily; otherwise, industry profits will be compressed to near-cost levels.
Long-term (6+ months): The mismatch between capacity expansion and demand growth remains to be resolved. Domestic organosilicon demand is projected to grow by 10% year-on-year in 2025 (totaling approximately 2.8 million tons), but new capacity additions may outpace demand growth, potentially placing long-term pressure on the price center.

IV. Conclusion
From September 1 to 7, 2025, the organosilicon market exhibited weakening cost support, aggravated supply-demand imbalance, and volatile downward prices. DMC prices fell from 10,300-13,000 yuan/ton at the beginning of the month to 10,300-11,000 yuan/ton at the end of the month. While regional price differentials were significant, the overall trading center of gravity shifted downward. Future price trends will require close monitoring of upstream silicon metal costs, downstream inventory replenishment demand, and the pace of industry capacity additions.