Silicone Product Prices Rebounded and Rose, While Overall Market Transactions Remained Sluggish [SMM Silicone Weekly Review]

SMM, April 2:

Cost: On April 2, east China #421 silicon (used in silicone) stood at 9,850 yuan/mt, unchanged on a MoM basis, while east China #421 silicon was at 9,500 yuan/mt, down 100 yuan/mt on a MoM basis. This week, the silicon metal market remained under pressure, with the transaction center for some grades edging lower. In addition, as the continued rise in the price of methanol, a key upstream raw material, was transmitted downstream, methyl chloride prices also kept rising, with market prices reaching around 2,600 yuan/mt. The comprehensive production cost of silicone monomer enterprises still increased WoW, and cost support strengthened further.

DMC: This week, the transaction range in China’s silicone DMC market was 14,200-14,300 yuan/mt, up 200 yuan/mt WoW from last week. Recently, transaction prices in China’s silicone DMC market saw a phase of repair and gains, thanks on the one hand to the continued rise in raw material prices and the strengthening cost support, and on the other hand to silicone monomer enterprises successively suspending quotations since last Thursday, which further boosted market sentiment and pushed prices to stabilize and rise. However, market transactions gradually turned sluggish this week, mainly because midstream and downstream clients had already completed phase restocking at low prices over the previous two weeks. Facing the current price increase, they generally adopted a wait-and-see attitude, with weak willingness to continue purchases at high prices while waiting for the market to become clearer.

Silicone Oil: This week, the price of conventional-viscosity dimethyl silicone oil was 15,500-16,100 yuan/mt, with an average of 15,800 yuan/mt, unchanged WoW. After the earlier phase of procurement, downstream players were mainly consuming inventory, remained cautious about accepting high prices, and overall market trading was mediocre.

107 Silicone Rubber: This week, the quoted market price range for conventional-viscosity silicone 107 rubber was 14,500-15,100 yuan/mt, with an average of 14,800 yuan/mt, up 150 yuan/mt WoW. This week, leading upstream producers entered a quotation suspension state supported by presale orders, which simultaneously drove a slight rebound in market transaction prices. Meanwhile, after making just-in-time procurement to restock at low prices over the previous two weeks, downstream clients were now purchasing cautiously and mainly consuming earlier inventory.

MVQ: This week, the MVQ price range was around 14,900-15,300 yuan/mt, with an average of 15,100 yuan/mt. Recently, MVQ transaction prices first loosened on profit concessions and then stabilized and rebounded. Amid back-and-forth negotiations between upstream and downstream, some upstream enterprises offered slight concessions to facilitate new orders and ease shipments pressure, while downstream clients followed up with just-in-time procurement at low prices. Later, as raw material prices gradually strengthened, coupled with the transmission of silicone monomer enterprises’ sentiment to hold prices firm, MVQ prices also rose in tandem and recovered, with the market center moving higher again.