[SMM analysis] The resumption of major manufacturers stimulated improvement of silicone, will the price gain continue?

The price of DMC in the online mall of Shandong DMC enterprises increased this week. The opening price this week was 15400 yuan/ton, and the price increased by 200 yuan/ton compared with last week. A leading DMC company resumed trading this week and raised prices twice in a row late at night. The current DMC quotation is 16,400 yuan/ton, with a price increase of 800 yuan/ton; 107 silicone rubber was quoted at 16,100 yuan/ton, with a price increase of 700 yuan/ton; 110 methyl vinyl silicone rubber was quoted at 18,300 yuan/ton, the price increased by 1,900 yuan/ton; silicone oil was quoted at 17,500 yuan/ton, the price increased by 1,000 yuan/ton; D4 was quoted at 16,700 yuan/ton, the price increased by 800 yuan/ton; compound rubber was quoted at 16,000 yuan/ton, the price increased by 1,000 yuan/mt. The DMC quotation of other companies was about 16,200 yuan/ton, and the price has increased by about 800 yuan/ton compared with last week.

This week, the silicone market has experienced an overall rise. Xinjiang's major manufacturer resumed trading late yesterday night after being closed for two weeks. 110 methyl vinyl silicone rubber prices rose three times in a row, with the largest increase, rising by 1,900 yuan/ tons, and other products have increased to varying degrees. SMM learned that most of the DMC companies that have closed their orders are expected to adjust prices upward to the same level as the major manufacturer in Xinjiang. According to SMM analysis, the current market sentiment is relatively strong, and the united front of many companies is conducive to price stability. SMM believes that the peak season grew the demand for high-temperature glue, room-temperature glue compared with the previous period. Moreover, the raw material inventory purchased in the early stage has begun to be consumed, and downstream companies have entered the market to replenish their stocks to drive transactions; domestic DMC companies currently have less inventory on hand, and pre-settled orders have not yet been delivered. The supply is relatively tight, which supports price increases.

SMM believes that the prices of subsequent products based on DMC will still be strong before April. Domestic leading companies opened this week to receive orders, and prices increased more than in the previous period, and market transactions improved. Besides, the domestic peak season is still fermenting, and demand supported a slight increase. Since April, as the peak season ends, demand at home and abroad will also weaken, and DMC prices will slide.