Downstream industries have not fully resumed work after the holiday, overall market transactions remain sluggish [SMM Silicone Weekly Review]

SMM February 26:

Cost side: On February 26, #421 silicon (used in silicone) in east China was at 10,000 yuan/mt, largely stable from pre-holiday levels, while #421 silicon in east China was at 9,650 yuan/mt, also largely stable from pre-holiday levels. After the Chinese New Year, the domestic silicon metal market was dominated by inquiries to understand the market, with sluggish spot transaction activity. Overseas inquiries were relatively active. Silicon enterprise quotations were flat compared to pre-holiday levels, while prices from futures-spot traders were relatively low. With expectations of production resumptions at large plants, the industry held a cautious outlook on the future market. Methyl chloride prices were largely stable, with mainstream transaction prices in the market at 1,900 yuan/mt. Overall costs were basically flat compared to pre-holiday levels.

DMC: After the holiday, domestic silicone DMC market prices started steadily, with the mainstream quotation range maintained at 13,800-14,000 yuan/mt, unchanged from pre-holiday prices. Regional quotations continued to show a divergent pattern, with monomer enterprise quotations in Shandong at 13,800 yuan/mt, while mainstream monomer enterprises in other regions quoted 14,000 yuan/mt. After the holiday, the overall market inquiry atmosphere was weak, but as mid- and downstream clients gradually resumed production, some mid- and downstream clients who still had gaps in pre-holiday restocking were expected to make appropriate procurement plans. Supply side, the reduced supply pace continued, and with some enterprises still supported by pre-sold orders, overall supply and inventory pressure remained relatively low. Therefore, in the short term, combined with the upcoming silicone industry conference this week, domestic silicone DMC market prices are expected to show a slight rise.

Silicone oil: This week, dimethyl silicone oil market prices remained stable, with conventional viscosity prices at 15,200-15,800 yuan/mt and an average price of 15,500 yuan/mt. Currently, domestic silicone oil enterprises are still gradually resuming production, overall market inquiries are few, and some are mainly focused on shipping pre-holiday orders.

107 silicone rubber: This week, silicone 107 rubber prices held steady, with the market price range for conventional viscosity quoted at 14,200-14,800 yuan/mt and an average price of 14,500 yuan/mt. After the holiday, except for monomer enterprises that maintained normal operations during the holiday, most other enterprises have not yet fully resumed work. The overall market performance was mediocre, but with the traditional peak season gradually approaching, subsequent orders are expected to improve.

MVQ: This week, MVQ price range was around 14,600-15,000 yuan/mt, with an average price of 14,800 yuan/mt, remaining stable. Although some downstream enterprises resumed operations, most were still mainly consuming pre-holiday purchased MVQ inventory, and some still had orders to be delivered, resulting in few market transactions.