For the Quarter Ending March 2024
North America
In Q1 2024, the Silane pricing dynamics in the North American region, specifically in the USA, experienced fluctuations and challenges. While the overall trend suggests a bearish market situation, it is essential to delve into a nuanced examination beyond the conventional top three factors.
The market was influenced by factors such as weak purchasing activities, reduced demand from the downstream electronic and construction sectors, and global economic weakness. These factors contributed to a decline in prices for Silane Electronic and coating grades. The supply of Silane remained moderate, with sufficient stockpiles in the market. However, there were disruptions in the ocean route, which affected global trading activities and reduced demand from outside the region.
The demand for Silane was low due to existing stockpiles and a broader economic environment characterized by uncertainty, price pressures, and overall weakness. The decline in electronics production globally also impacted the demand for Silane in the electronic industry. In terms of seasonality, the first quarter is typically characterized by slower demand and reduced purchasing activities. Finally, the quarter concludes with the final price for Silane Coating Grade DDP Texas in the USA at USD 3400/MT.
APAC
In Q1 2024, the Silane pricing dynamics in the APAC region, particularly in China, witnessed significant fluctuations. The market situation in China was characterized by a bearish trend, primarily driven by weak demand from the downstream electronic sector. The global electronics industry faced challenges with subdued client demand, resulting in a decline in new orders placed with electronic manufacturers. This downward trend was attributed to the weak global economy, persistent inflationary pressures, and project postponements. The supply of Silane remained moderate, with sufficient stockpiles in the market. However, disruptions in the Red Sea supply chain led to a reduction in overseas demand and new orders from the international market. The pricing trend in Q1 2024 showed a decline compared to the same quarter last year, mainly due to weak demand conditions and global economic challenges. Additionally, there were no recorded plant shutdowns during this period that significantly impacted the pricing dynamics. Overall, the Silane Coating Grade FOB Shanghai in China concluded the quarter at USD 3000/MT.
Europe
In Q1 2024, Silane pricing dynamics in the Europe region were influenced by various factors beyond the conventional top three. The overall trend in the German market reflected a bearish sentiment, with weak demand from the downstream electronic and construction sectors. The global electronics sector faced challenges due to weak client demand, while the German construction sector witnessed an ongoing decline influenced by market uncertainty and elevated interest rates. These factors resulted in reduced purchasing activity and downsizing by construction firms, leading to a decrease in demand for Silane. Additionally, disruptions in ocean routes impacted international trading activities, further affecting export demand. Despite sufficient supply meeting domestic requirements, the market experienced a slowdown in trading activities. Looking at price changes, the year-over-year comparison showed a decline in prices for Silane Coating Grade in Q1 2024 compared to the same quarter last year, reflecting the challenging market conditions. However, the comparison with the previous quarter of 2023 indicated a stable price trend. The final quarter's price for Silane Coating Grade FD Hamburg in Germany was recorded at USD 3712/MT.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Silane market experienced various factors that influenced prices and market conditions. One of the key factors was the limited supply of Silane, which led to an increase in prices. This scarcity of supply was primarily due to a surge in demand from the domestic market and the depletion of product stocks. Additionally, the rising interest rates and increased production costs, driven by higher crude oil prices, also contributed to the upward pressure on prices. Furthermore, the US market, in particular, witnessed significant price changes in the Silane market. The prices of Silane in the US increased by 8% in October on a DDP Texas basis.
In November, US manufacturers reported a renewed decline in operating conditions, influenced by lower new orders that had a notable impact on the sector's overall performance. Producers of goods observed a marginal decrease in new sales, which was attributed to factors such as weak client demand, economic uncertainty, and customers persisting in depleting their stock levels. Firms cut stock levels amid muted demand conditions. The downstream industries, specifically mentioning solvents, coating appeared to be cautious in their procurement approach, only making purchases on a need basis. This lack of proactive buying from downstream industries indicates a more conservative and reserved stance, possibly influenced by market conditions or strategic considerations.
In December, the Silane price dropped sharply due to the weak demand from the downstream electronic and construction sectors. The lack of new incoming business afforded companies the opportunity to attend to existing backlogs. The absence of additional orders allowed businesses to focus on fulfilling and completing outstanding work that had accumulated over time. This situation highlights a period of relative stability or reduced demand, providing companies the chance to streamline their operations by addressing and clearing existing backlogs.
APAC
The fourth quarter of 2023 was challenging for the Silane market in the APAC region. During October and November market had limited product availability and increased demand were the primary factors influencing the market dynamics. The lack of supply led to a sharp uptick in prices, particularly in China, which experienced an 8% increase in Silane coating prices compared to the September month. The surge in demand, driven by the construction and electronics sectors, further contributed to the price hike. The Chinese market, being the largest consumer of Silane, witnessed a decline in export orders as the year-end approached. In December, reduced demand for Silane from the downstream electronic and coating sectors. The global electronics sector continued to face challenges with weak client demand towards the end of the year. Companies consistently linked the deterioration in operating conditions to global economic weakness, persistent inflationary pressures, and a growing number of projects being put on hold. Additionally, electronics firms worldwide continued to reduce their workforce numbers in the fourth quarter, with the rate of job creation accelerating slightly from November but remaining marginal overall.
Europe
In October and November 2023, prices for Silane in the German market experienced an upward trajectory. Despite a decline in construction activity, the demand for the product slightly improved due to the limited availability of the product. Silane prices have experienced an increase in the international market, prompting traders to reconsider their product prices to bolster their profit margins. Despite this adjustment, the overall demand has remained largely unchanged. Merchants in the German market received inquiries from the overseas market as well. During December, the supply of the product remained abundant, leading to a market with sufficient stockpiles, and some discounted prices were quoted as the year ended. The decrease in demand for building materials and products continued to positively impact supplier delivery times, by the fourth quarter's end. The persistently muted global economy, ongoing inflation, and the postponement of projects were frequently cited as contributing factors dampening demand in the electronic manufacturing sector. This absence of fresh work opportunities contributed significantly to the persistent downturn experienced in the sector.
For the Quarter Ending September 2023
North America
The price of Silane coating grade exhibited a gradual declining trend during the first two months of the third quarter but rose suddenly due to a shortage of the product. In July and August, the contraction was caused by a monthly decline in new orders as domestic and foreign demand remained weak. Despite the sharp fall in performance and the decrease in the number of new orders, companies reported an increase in employment at the beginning of the third quarter. The downstream coating industry's performance did not change significantly, further limiting the cost of the product. Towards the end of the quarter, there was a slight improvement in product demand, but the available supply was insufficient to meet domestic requirements. Consequently, domestic manufacturers raised prices in response to increased demand and market conditions. Furthermore, the positive trend observed in the domestic market was also influenced by the impact of increased interest rates. The extended period of declining availability had depleted product stocks, but this month witnessed an uptick in demand, prompting the need to replenish product supplies in the market. Additionally, the price of crude oil influenced the production cost of Silane.
Asia
The cost of Silane experienced a mixed trend in the Asian market throughout the third quarter of 2023. In China, the manufacturing industry saw a decline for a fourth consecutive month in July, while the services and construction sectors were on the verge of contraction, posing a threat to third-quarter growth prospects. Additionally, the export of Silane to overseas markets decreased in July due to gloomy global trading activities among enterprises. Sluggish consumer spending played a significant role in China's slow post-Covid recovery, making it challenging to stimulate growth. Furthermore, heavy rainfall negatively impacted construction activities, leading to reduced demand for coating materials. Although new orders at factories showed a modest uptick, the ongoing decline in export orders continued to weigh down the goods-producing sector, contributing to an overall subdued performance in the order book. Towards the end of the quarter, the Silane market experienced a sharp increase in prices due to limited availability. The extended period of declining availability had depleted product stocks, but this month witnessed a surge in demand, prompting the need to replenish product supplies in the market. Additionally, fluctuations in crude oil prices influenced the production cost of Silane.
Europe
The sharp decline in prices charged by producers is a result of increased competitive pressure and a decrease in production costs, which had reached record lows in July. Many reports indicate that customers are adopting a wait-and-see approach and seeking to reduce their inventory. High interest rates and inflation in Germany and the Eurozone have dampened demand in the paint and coating industry. Data shows that destocking is a prominent trend, with companies optimizing their inventories due to reduced workloads and improved material availability. The decreased demand for materials is reflected in the sixth consecutive monthly improvement in vendor delivery times, as pressure on supply chains has eased. Towards the end of the quarter, a supply shortage of the product in the European market significantly impacted its pricing dynamics. With limited availability, the demand for the product began to outstrip its supply. There was a sharp increase in product demand, but the available supply was insufficient to meet domestic requirements. Consequently, domestic manufacturers raised prices in response to increased demand and market conditions. The extended period of declining availability had depleted product stocks, but this month witnessed an uptick in demand, prompting the need to replenish product supplies in the market
For the Quarter Ending June 2023
North America
The price of Silane coating grade witnessed a declining pattern throughout the Second quarter of 2023 due to the gloomy demand around the Silane market. Manufacturing new orders fell at the quickest rate since December 2022 as companies reported difficulties receiving new business as consumers continued to consume their existing inventories with muted consumer confidence. Recent production data indicated a worsening in operating circumstances. Cost pressure continued throughout the quarter to dwindle across the manufacturing sector as suppliers sought to boost their sales and offer reduced prices. At the conclusion of the second quarter, the greater success in finding suitable candidates allowed firms to expand their workforce number in June, despite concerns about the future demand conditions. The downstream coating industry's performance was poor in the construction sector, which ultimately declined the consumption of Silane coating grade in the US market. The cost of Silane coating grade in June 2023 has hovered around USD 2839/MT on a DDP Texas basis.
APAC
In the second quarter of 2023, the cost of Silane coating grade remained a bearish pattern in the Asian market due to the poor performance of the coating industry. In China, the Silane market showed a sluggish trend amid uncertain economic activities. The fresh orders from the domestic and overseas markets declined owing to the high-interest rates from the importing countries, dampening the demand for the product. However, weak exports and confidence continue to hinder private-sector investment. Further, industrial production has experienced a slowdown due to subdued exports in China. The manufacturers set lower prices in the market since there was sufficient material in the Chinese market to satisfy the needs of the downstream industry. A recent survey says the manufacturing activity contracted a third straight month in June, albeit at a slower pace as well as weak demand. Further, the manufacturing purchasers index (PMI) remained below its threshold limits throughout the second quarter of 2023. The cost of Silane coating grade in June 2023 has hovered around USD 2666/MT on a FOB Shanghai basis.
Europe
Throughout the second quarter of 2023, the cost of Silane coating grade saw a bearish trend in the European region due to high-interest rates, inflation, and general hesitancy. Product manufacturers in the Eurozone's biggest economy faced a sharp drop in new orders during this quarter, led by plunging export sales. The second quarter of 2023 manufacturing PMI data showed deterioration in business conditions, and the demand for the product remained plummeted in this region. A lack of new contracts remained the primary factor behind the reduced activity and continued to discourage the firms from buying new materials. Further, the coating industry was showing a sluggish market due to the construction remaining downturns in German throughout the quarter. However, the company benefited from lower demand for inputs because supply chain issues disappeared, and input price inflation continued to weaken. According to ChemAnalyst, the cost of Silane coating grade hovered around USD 3106/MT on an FD Hamburg basis in the last month of the second quarter of 2023.
For the Quarter Ending March 2023
North America
Throughout the USA, the price of Silane coating grade has been steady throughout the first quarter of 2023. Due to sluggish orders from the construction, automobile, and coating industries, the price leveled out in the quarter. As overseas client demand conditions remained historically poor, new export orders declined for ten straight months at the end of the first quarter. Participants in the market claim that the US market has seen a decline in new orders and that demand from the downstream construction sector (paints and coatings) has been poor to stable. The cost of Silane was witnessed at USD 3080/MT on a DDP Texas basis at the end of the quarter.
Asia
The price of Silane coating grade showed a mixed trend in the Asian market throughout the first quarter of 2023. After the Lunar holidays, the cost of Silane saw an upward tick due to high inquiries from the domestic market to stock up on the product. In India, the demand for the product was sluggish, coupled with lower imported cargo from overseas markets. Along with the freight charges from the overseas market declined and supported the Silane market in the Indian domestic market. The cost of Silane was witnessed at USD 5467/MT on an Ex-Mumbai basis at the end of the quarter.
Europe
The price of Silane has fluctuated throughout the first quarter of 2023 in the German market due to a stagnant economy. The demand for the product was weak to a stable pattern, and the majority of procurement was based on a need basis. In addition, the ECB hiked interest rates in response to volatility in the banking sector, signaling its readiness to provide liquidity support for banks. As interest rates rose, demand often dropped, which tended to have a negative impact on the global petrochemical industry, including the Silane market. The cost of Silane was witnessed at USD 3325/MT on an FD Hamburg basis at the end of the quarter.
For the Quarter Ending December 2022
North America
The price of Silane saw a downward price trajectory throughout the fourth quarter of 2022. The demand from the downstream paints & coating and electronic sectors had average demand in the USA market. The global market was stagnant in Q4, orders from the overseas and regional markets of the US declined, and the product got stockpiled. The holiday approached in the last month of Q4, further decreasing demand and orders from buyers. In addition, in the face of inflation, domestic consumers tended to wait and buy. The cost of Silane electronic grade hovered around USD 5724/MT on a DDP Texas basis during December 2022.
APAC
During the fourth quarter of 2022, the price of Silane decreased in Asia. The interest from the downstream business was low and ample availability of the item in the market declined the expense of Silane. Some manufacturers have cut off the production rate due to the low buying sentiments from the end-use industries. The government imposed the zero COVID restriction in China during Q4, which affected the trading activities in the domestic and overseas markets. Due to year-end, the traders sold the product at an offer price to destock the material. The cost of Silane Electronic grade was settled at USD 5294/MT on a FOB Shanghai basis during December 2022.
Europe
Due to weak market sentiment, the price trend of Silane gradually declined throughout the Quarter 4 of 2022. Due to low demand from the end-use industries, several enterprises slowed down their production rates, but product availability was abundant. The manufacturers have quoted lower prices due to weak demand from the end-use industries. As the holidays got closer, producers offered to destock their products at a low price at the end of quarter 4. The cost of Silane Electronic grade was settled at USD 5867/MT on an FD Hamburg basis during December 2022.
For the Quarter Ending September 2022
North America
Silane's prices declined in the North American region during the third Quarter of 2022. Freight charges were observed to be declined sharply on the Asia-US routes during the third Quarter amidst the smooth flow of cargoes, which resulted in ample availability of products in the international market. Due to the poor buying sentiments from the consumers, the manufacturers have to reduce the product's price. The USA is one of the largest exporters of Silane globally. The ocean freight charges declined in September, and declining demand from the downstream industries made the price trace a negative trend. According to the analysis, the cost of Silane was reduced by 28% during the third Quarter of 2022.
APAC
During the third Quarter of 2022, the price of Silane witnessed a decline during the third Quarter of 2022. The high inventory from the manufacturers and surplus availability of the product further decreased the price. The quotations from the manufacturers have been reduced due to the increased availability in the Asian market. Meanwhile, the demand from the downstream paints and coatings industry declined, putting downward pressure on the product's prices in the regional market. In addition, the Chinese market witnessed a steep freight charge decline to the West Coast of the USA after the country's post-pandemic uncertainties eased along with an increase in vessel and container availability. At the same time, demand from the international market weakened, causing a stockpiling of the product in the Chinese domestic market. As a ripple effect, the cost of Silane depreciated by 37% during the third Quarter of 2022.
Europe
The prices of Silane witnessed a downward trajectory during the third Quarter of 2022 in the European market. The freight charges vary according to the global Crude Oil markets along with the easing availability of shipping containers which impacted the prices of Silane. As shipping rates dropped during the middle of the Quarter, consumers' expenses declined, and backlogs of suppliers were cleared, which helped the queues at ports to ease down towards the end of the Quarter. The high inventory from the traders in the market amidst sluggish buying sentiments from the end-use industries supported this pricing dynamics. Due to the poor demand from the construction and coating industries, Germany's construction PMI fell to 41.8 points in September from 42.6 points in August. Thus, affected the market for several commodities in the country, including Silane. The cost of Silane declined in the European market by 24% during the third Quarter.
For the Quarter Ending June 2022
North America
In North America, the Silane price observed a mixed trend in the second quarter of 2022. The sanctions on Russian commodities and China covid lockdown further reduced the demand dynamics in the region. In April, crude oil and natural gas prices soared the manufacturers raised quotations for upstream silicon in the global market. The cost pressure from the upstream was strengthened in April, leading to the downstream Silane price in the region. The buying trend of the product also increased the price. Rising inflationary pressures, sluggish buyer confidence in the outlook, and supply-chain disruptions, on the other hand, have pushed up Silicon prices in June.
Asia-Pacific
In the second quarter of 2022, the Silane price has witnessed plunging sentiments due to weak demand from the downstream industries. The upstream raw material silicon metal prices plummeted in the Chinese market due to the May Day holiday, and the market transaction was the resulting poor drop in prices. Some parts of China had covid lockdown, and disruption in supply chain value further affected the product price. In the Chinese market, export prices have fallen due to poor trading sentiments. Due to low upstream prices, the cost of Silane in the region has decreased. A poor buying trend had seen in the market.
Europe
In Europe, the Silane price has observed mixed sentiments in the second quarter of 2022. In April, the upstream Silicon metal price rose continuously due to sanctions against Russia’s import and export business. The production cost has increased due to the price rose in energy. The upstream Silicon prices skyrocketed because restrictions on Russia and Belarus affected the downstream commodities. At the end of April, the weak demand from downstream industries plunged the price of Silane in the region. Low demand and sufficient supply of products resulted in price decline in the region. However, in June, the upstream silicon suppliers speculated about higher prices in China.
For the Quarter Ending March 2022
North America
North America saw an increase in the price of Silane in Q1 2022 due to restricted raw material imports and crippled factory production, which caused massive disruptions in the supply chains. The consistent demand from end-use industries provided a silver lining for traders for undertaking a positive price revision to extend their profit margins. Owing to this bullish buying momentum of Silane in the country, its domestic prices showcased a consistent surge. Escalating demand for Photovoltaic cells which are used in solar panels especially stimulated the hike in the prices of silane feedstock.
Asia Pacific
In Asia Pacific the price of Silane escalated in the first quarter of 2022 with prices starting at the range of USD 13090/ton Ex-Mumbai in January and hovering around USD 12968/ton – USD 13230/ton Ex-Mumbai in the month of February. The price went as high up to 9.9% in the end of Q1 due to disruptions in the global supply chain which triggered a spike in Silane prices as Indian importers found no other options but to look for their imports from other regions. Prices of Silane witnessed a consistent uptick over the past three months because of compelling demand fundamentals against its limited availability.
Europe
During Q1 2022, Silane saw an upward surge in the price due to its limited imports against its healthy demand in the domestic market and shortage of feedstock. Moreover, surging demand from the downstream electronics, automotive and construction sectors and global inflation in the ocean freight soared Silane values in this timeframe. Additionally, substantial deals of upstream aluminium silicide and an acute energy crisis further sent ripples to silane fundamentals during the first quarter. The market traders reported strong gains in the downstream solar module prices and other downstream material constraints due to a critical shortage of the key raw material of Silane.
For the Quarter Ending December 2021
North America
Silane market appeared to be bullish during the fourth quarter in the US market backed by the robust demand from Silicone manufacturers. Surging demand for Photovoltaic cells that are used in solar panels specially stimulated the hike in the prices of silicone feedstock Silane. Moreover, delayed cargoes from Asian markets along with high freight charges, kept the pricing trend bullish in this quarter. Besides, traders kept the prices high to safeguard their interests transferring the cost pressure to the consumers in the domestic market.
Asia Pacific
Silane market sentiments varied from country to country in Asia Pacific region during the fourth quarter. In India, Silane prices experienced a downward trajectory in Q4 backed by ample supplies. The demand outlook remained stable to low in the local market. Traders had already stocked sufficient inventories in worries of supply shortage that kept the prices low in this timeframe. Moreover, in the last month of the quarter, lull trade activities and dampened market sentiments due to year end further aided the pricing curve of Silane. Hence, Silane 99% Ex Mumbai prices were assessed at USD 12666.40/MT in December showcasing a significant decline of around USD 4000/MT since October.
Europe
Silane prices witnessed an upward trend across the European region in Q4 2021. Delayed imports due to resurgence in Covid 19 cases as well as lower production in China in effect of electricity curbs led to the supply shortage in the region, keeping the pricing trend firm throughout the quarter. Moreover, strong demand from the downstream Electronics, Automotive and Construction sectors, soared Silane values in this timeframe. Additionally, strong values of upstream and acute energy crisis further sent ripples to silane fundamentals during the fourth quarter.
For the Quarter Ending September 2021
North America
The market outlook of Silane Gas during Q3 2021 remained under doldrums as skyrocketing prices kept the buyers side-lined and cautious over making unnecessary purchases. Producers reported overseas shipping limitations that affected the timing for order fulfilments. Market sentiments remained bullish due to growing demand for photovoltaics. Prices roof as traders stocked up inventories in fears of material shortage. However, weak demand for solar cells cell worried the Silane manufacturers who faced immense cost pressure and squeezed production margins. Biden Administration pushing for faster transition to renewables.
Asia Pacific
While several Asian economies in the Asia Pacific faced resurgence of COVID, regional Silane Gas manufacturers reported strong demand from the electronics sector as the key market driver amidst all challenges. The demand from the solar industry is already seeing price rise because of the shortage of panel raw material polysilicon under certain supply bottlenecks. As per market players, due to acute Silane Gas shortages, there has been lasting impact in the costing of certain critical components in the material supply chain.
Europe
The European Silane industry reported continued tightness in the market supplies amidst firm Polysilicon demand and delayed imports. The market players reported strong gains in the downstream solar module prices and other downstream material constraints due to critical shortage of the key raw material Silane which could be seen resolving by the end of Q2. Prices surged tremendously led by persistent shortage in market supplies. Wacker Chemie AG (Munich, Germany) started the construction of a silane and liquid resins unit at its Nünchritz, Germany site. The company’s Nünchritz site will convert silanes into silicone products which would be used in the construction and coating applications.
For the Quarter Ending June 2021
North America
Q2 brought a much-needed recovery in the regional Silane demand as end-use operations picked up to cope with the market rebound. Producers reported continued logistic delays as the key factor restricting the regional availability of the product. The region reported higher downstream semiconductor grade polysilicon sales volumes due to pick up in the semiconductor sales. The market players reported overseas shipping limitations that affected the timing for order fulfilments. Prices went through roof as traders stocked up inventories in fears of material shortage. However, weak demand for solar cells cell worried the Silane manufacturers who faced immense cost pressure and squeezed production margins.
Asia Pacific
While several economies in the Asia Pacific faced resurgence of COVID, regional Silane manufacturers reported strong demand from the electronics sector as the key market driver amidst all challenges. The Asian Silane demand remained healthy amidst market optimism with vaccines roll out and strong consumer activity. However, some suppliers reported logistic delays in the return of vessels from the Asian countries like Taiwan, Korea, Japan, and China. With huge capacity additions scheduled in Korea and China in H2 2021, the regional Silane gas market is anticipated to register phenomenal growth in the upcoming quarters. Prices in general were on a downtrend (around 3% lower over Q12021), despite high operational costs and better demand.
Europe
The European Silane industry reported continued tightness in the market supplies amidst firm Polysilicon demand and delayed imports. The market players reported strong gains in the downstream solar module prices and other downstream material constraints due to critical shortage of the key raw material Silane which could be seen resolving by the end of Q2. Prices surged tremendously eld by persistent shortage in market supplies. Wacker Chemie AG (Munich, Germany) started the construction of a silane and liquid resins unit at its Nünchritz, Germany site. The company’s Nünchritz site will convert silanes into silicone products which would be used in the construction and coating applications.
For the Quarter Ending March 2021
North America
Several Silane gas producers reported higher demand for silane-based products in photovoltaics and for TFT/LCD manufacturing with the sharp rebound in the economic outlook. Prices rose in response to various market conditions and economic factors including ramped up manufacturing, rising distribution costs, high demand and tightening raw materials. With a marked growth in semiconductor content in electronic systems during the quarter, the demand for Silane gas in chemical vapor deposition jumped by double digits. But the supply got disrupted after the winter freeze halted the production at several production facilities in mid-February which was compounded by blockage at the Suez Canal for nearly a week, which choked off semiconductor chips headed for Europe.
Asia
In Asia, a sharp economic rebound enabled semiconductor industry to report robust sales in Q1 2021, thereby prompting high demand for silanes and its derivatives. But the industry reported a sharp rise in Silane gas prices due to high demand and raw material shortages. Chinese Lunar New Year holidays exacerbated the Asian Silane market tightness, but the market remained optimistic with the government vastly increasing investment in the semiconductor industry. Prices remained stable in South Korea where the downstream polysilicon industry faced Chinese competition.
Europe
Europe reported sharp rebound intheSilane prices during Q1 due to macroeconomic uncertainties. Translating strong increases in the raw material costs and global inflation in ocean freight, the European Silane producers preferred to raise Silane prices during the quarter. German multinational chemical company WACKER AG announced to raise the prices for all its silicones product range including Silanes amidst fuming raw material rates and supply shortage. The upward revision in the price was between 10 and 20 percent for all its shipments across the globe scheduled from April onwards. The company also stated strengthening cost for packaging materials and pandemic related constraints as the additional factors supporting the uptrend.
For the Quarter Ending December 2020
North America
During October, REC Silicon ASA and Violet energy corporation collaborated to build a Silane gas based solar cell manufacturing unit. REC would invest USD 1.7 billion on the project to satisfy the immediate requirement of solar cell of violet plant. This unit will definitely raise the demand of Silane gas and will increase the availability of solar cell within the region. The US government was heard investing and making policies to shift the solar cell market from China to US itself, this shift is likely to push the regional Silane gas demand.
Asia
In Asia, the COVID 19 recovery prompted countries to register sharp regain in semiconductor industries during Q4 2020. Transit Fluorine Silicon Materials, a major silicon manufacturer of China had a fire at its plant during November. That declined the supply of Silane gas and created shortage of silicon for multiple industries within China and other importing countries like India as well. Although the overall demand of silicon related products was low in India compared to same quarter last year, sentiments turned favourable on Q-o-Q basis.
Europe
Europe reported strong recovery intheSilane market during Q4 2020 compared to prior quarter. A major manufacturer of Silane in Norway reported improved sales volume in the final quarter. The regional Silane market was largely dealing with sufficient supply due to reduced export volumes towards the end of the quarter. Persistent shortage of containers in December directed prices to rally upwards, registering a rise of about 2.8% within the quarter. In addition, demand of Polysilicon in the region was rallying up in the same quarter. As an effect of this rise, the demand of Silane gas witnessed incredible increase during the quarter.
