Market Transaction Center Shifted Slightly Downward, with Increased Wait-and-See Sentiment Among Downstream Buyers [SMM Silicone Weekly Review]

SMM, March 19:

Cost: On March 19, east China #421 silicon (used in silicone) was at 9,850 yuan/mt, basically flat MoM, while east China #421 silicon was at 9,600 yuan/mt, basically flat MoM. After a stalemate, the silicon metal futures market fluctuated downward, market sentiment was weak, and the silicon metal price center declined WoW. Monochloromethane prices fluctuated but remained stable, with mainstream market transactions at 2,200 yuan/mt, and overall costs were basically flat from before the holiday.

DMC: This week, the mainstream quotation range in China’s silicone DMC market was 13,800-14,300 yuan/mt, down 100 yuan/mt WoW. By regional quotations, monomer enterprises in Shandong quoted 14,000 yuan/mt, while mainstream monomer enterprises in other regions mostly quoted 14,300 yuan/mt. Overall market trading remained weak, with increasing back-and-forth negotiations between upstream and downstream. Although the midstream still had raw material support, procurement sentiment was cautious, wait-and-see sentiment was strong, and transactions were mainly small orders for rigid demand. On the supply side, most upstream producers operated at around a 70% operating rate, and weekly supply was relatively stable. Going forward, as maintenance plans at a few monomer enterprises begin at month-end, supply is expected to see a phased contraction.

Silicone Oil: This week, the market price range for conventional-viscosity silicone dimethyl silicone oil was 15,500-16,100 yuan/mt, with an average price of 15,800 yuan/mt, basically flat MoM. At present, supported by export orders, producers had relatively sufficient presale order schedules overall, so quotations remained relatively firm.

107 Silicone Rubber: This week, the quoted market price range for conventional-viscosity silicone 107 rubber was 14,200-15,100 yuan/mt, with an average price of 14,650 yuan/mt, down 150 yuan/mt WoW. Recently, affected by downstream silicone sealant enterprises intensively issuing price hike notices, some end-users were stimulated to a certain extent, driving the release of rigid-demand procurement. However, for downstream producers such as silicone sealants, previously stocked raw material inventory remained sufficient, and short-term upward demand release was weak. As a result, overall new order transactions in the market were weak, and some producers slightly loosened room for negotiation.

MVQ: This week, the MVQ price range was about 14,900-15,300 yuan/mt, with an average price of 15,100 yuan/mt. Raw material inventory purchased earlier by downstream compound rubber enterprises was still being consumed, so external demand release was currently limited. Market transactions were mainly small volumes for rigid demand, shipments on the supply side were under pressure, and MVQ prices are expected to remain in the doldrums in the short term.