Silicone Full Product Line Prices Raised, New Orders Dominated by Rigid Demand [SMM Silicone Weekly Review]

SMM, April 9:

Cost: On April 9, east China #421 silicon (used in silicone) was at 9,600 yuan/mt, down 250 yuan/mt WoW, and east China #421 silicon was at 9,400 yuan/mt, down 100 yuan/mt WoW. The silicon metal market saw narrow and slightly weak consolidation this week, with sluggish supply and demand. Coupled with no near-term expectations for improvement in fundamentals, prices remained at low levels. Methyl chloride prices still edged up driven by raw materials, with market prices reaching approximately 2,700 yuan/mt. The comprehensive production costs of silicone monomer enterprises still rose WoW, but the overall magnitude was relatively small.

DMC: This week, China's silicone DMC market traded in the range of 14,400-14,500 yuan/mt, up 200 yuan/mt WoW. In terms of regional quotes, monomer enterprises in Shandong quoted 14,400 yuan/mt, up 400 yuan/mt from early March, while mainstream monomer enterprises in other regions mostly quoted 14,500 yuan/mt, up 200 yuan/mt from early March, with the inter-regional price spread narrowing. New order transactions were generally mediocre this week. Mid- and downstream enterprises currently focused mainly on consuming existing raw material inventory, with only small volumes of just-in-time procurement, and remained cautious about purchasing high-priced cargoes given the unclear outlook for subsequent market changes. Supply side, upstream monomer enterprises maintained a firm stance on holding prices firm, supported by cost support, rigid enforcement of industry emission reduction policies, and ample pre-sale order backlogs. Considering the overall tug-of-war between sellers and buyers, China's silicone DMC market prices are expected to remain stable in the near term, with subsequent trends requiring close attention to changes on the cost side and downstream demand.

Silicone oil: This week, the silicone dimethyl silicone oil market price for regular viscosity was at 15,700-16,300 yuan/mt, with an average price of 16,000 yuan/mt, up 200 yuan/mt WoW. Strengthened cost support boosted prices in tandem. However, demand side, downstream buyers currently focused mainly on consuming inventory, with new order transactions limited to just-in-time procurement.

107 silicone rubber: This week, the silicone 107 silicone rubber regular viscosity market price range was quoted at 14,700-15,300 yuan/mt, with an average price of 15,000 yuan/mt, up 200 yuan/mt WoW, with prices rising in tandem with raw material DMC. Demand side, after the previous phase of concentrated restocking, downstream enterprises currently had relatively sufficient raw material inventory overall. Market purchasing focused on digesting existing inventory and making just-in-time procurement, with limited follow-through on new orders overall. Additionally, although demand from the construction industry improved somewhat recently, the actual demand boost remained insignificant.

MVQ: This week, MVQ prices ranged approximately 15,300-15,700 yuan/mt, with an average price of 15,500 yuan/mt, up 400 yuan/mt WoW. Supply side, producers currently focused mainly on delivering previously pre-sold orders, with limited spot cargo circulation in the market. Some enterprises had ample order backlogs, and delivery lead times were extended. Demand side, although downstream players had already conducted phased restocking when prices were at relatively low levels earlier, spot resources in the market remained tight due to prolonged delivery cycles from manufacturers. Some clients with rigid demand were forced to purchase at high prices to ensure production continuity.