Weekly Operating Rate of DMC Shows a Slight Rebound, Future Supply Reduction Is Still Expected [SMM Analysis]

Published: Feb 28, 2025 14:01

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[SMM Analysis: Weekly Operating Rate of DMC Slightly Rebounds, Further Supply Reduction Still Expected] This week, the operating rate of domestic monomer enterprises slightly rebounded, with some monomer enterprises in east and central China resuming operations after reducing load. However, nearly 1.6 million mt of domestic capacity remains under maintenance, and some monomer enterprises still have maintenance plans in the near future, leading to low operating rates recently.

SMM February 28 News: This week, domestic silicone monomer enterprises saw a slight rebound in operating rates. Monomer enterprises in east and central China resumed operations at previously idled units. However, nearly 1.6 million mt of domestic capacity remains under maintenance, and some monomer enterprises still have maintenance plans in the pipeline. Operating rates are currently running at low levels. Figure Weekly Production Trend of Silicone DMC From the production trend perspective, in the weeks following the end of the Chinese New Year, domestic monomer enterprises experienced a continuous decline in operating rates. Last week, total domestic DMC production dropped below 40,000 mt. However, this week, as some enterprises completed their maintenance periods, certain monomer capacities resumed operations. Production facilities in Shandong, Hubei, and Jiangxi provinces restarted, pushing domestic DMC production up sharply to nearly 50,000 mt, with operating rates exceeding 70%. Regarding the forecast for monomer operating rates, production is expected to remain in the range of 45,000-50,000 mt in the near term, primarily due to the commencement of the next round of maintenance cycles. For instance, monomer enterprises in Inner Mongolia and Jiangsu are about to enter maintenance periods, which may lead to further reductions in operating rates. Additionally, other monomer enterprises are not yet operating at full capacity.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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