Cost Support and Peak Season Demand Recovery: Silicone Market Consolidates on a Strong Note [SMM Silicone Weekly Review]

Published: Sep 10, 2026 18:10

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[SMM Silicone Weekly Review: Cost Support Combined with Peak-Season Demand Recovery, Silicone Market Consolidates on a Strong Note] This week, the silicone market saw its price center continue to move higher, supported by stronger cost support and peak-season demand recovery. DMC was quoted at yuan 14,500–14,700/mt today (raised by yuan 500/mt earlier this week), silicone oil at yuan 15,500–16,000/mt, 107 silicone rubber at yuan 14,200–14,500/mt, and MVQ at yuan 15,000–15,700/mt. On the supply side, some monomer facilities in east China, north China, and central China reduced operating rates, and most enterprises have pre-sale orders scheduled through late September, leaving spot cargo in the market tight and the willingness to hold prices firm strong. On the demand side, buyers maintained just-in-time procurement without significant stockpiling, and were cautious about rushing to buy amid continuous price rise. In the short term, prices are expected to consolidate on a strong note, with upside room depending on downstream acceptance of high prices. Going forward, attention should be paid to methanol price trends and downstream actual order follow-through.

SMM, September 10:

Cost side, on September 10, the average price of #421 silicon (used in silicone) in east China stood at 9,700 yuan/mt, flat, while the average price of #421 silicon in east China was 9,600 yuan/mt, also flat. This week, silicon metal prices were firm, with silicon suppliers holding quotations firm and downstream buyers mainly making just-in-time procurement. On Monday, affected by rising methanol prices, some enterprises suspended methyl chloride quotations. The comprehensive production cost of silicone monomer enterprises rose WoW.

DMC: This week, China's silicone DMC price center moved up. Yesterday, the DMC quotation range was 14,000-14,200 yuan/mt, and today DMC prices were raised by 500 yuan/mt, with mainstream quotations at 14,500-14,700 yuan/mt. Raw material side, #421 silicon metal (used in silicone) prices in east China remained firm, coupled with a sharp rise in methanol prices, which gained over 10% from month-end August, driving up direct production costs of DMC and providing support for producers to raise quotations. Supply side, some monomer facilities in east China, north China, and central China were running at reduced loads, while other monomer plants operated normally. Currently, most monomer producers have orders scheduled through late September, and spot cargo in circulation is tight. In the short term, China's DMC prices are expected to consolidate on a strong note.

Silicone oil: This week, the market price of conventional-viscosity dimethyl silicone oil continued to move up. Yesterday, the silicone oil quotation range was 15,400-15,500 yuan/mt, and today monomer producers raised quotations to 15,500-16,000 yuan/mt. Cost side, rising DMC raw material prices, coupled with tight supply of silicone ether raw materials, provided favorable support for silicone oil prices. Demand side, downstream buyers maintained just-in-time procurement, with no signs of large-scale stockpiling.

107 silicone rubber: This week, the market price center of conventional-viscosity 107 silicone rubber edged up. Yesterday, the 107 silicone rubber quotation range was 14,100-14,300 yuan/mt, and today monomer producers raised quotations to 14,200-14,500 yuan/mt. Demand for 107 silicone rubber was weaker than other products. Although downstream wait-and-see sentiment weakened somewhat, buyers still mainly made just-in-time restocking, and market trading sentiment was mediocre.

MVQ: This week, MVQ market prices continued to rise. Yesterday, the mainstream MVQ quotation range was 14,900-15,100 yuan/mt, and today monomer producers raised quotations to 15,000-15,700 yuan/mt. Cost side, DMC raw material prices continued to climb, and MVQ prices followed suit, with producers showing strong willingness to hold prices firm. Downstream rubber compound enterprises followed up with just-in-time procurement, but remained cautious about rushing to buy amid continuous price rise.

Overall, with strengthening cost support and recovering traditional demand in the silicone market, silicone prices are expected to consolidate on a strong note in the short term. However, upside room still depends on downstream acceptance of high-priced raw materials. Going forward, close attention should be paid to methanol price trends and downstream actual order follow-through.

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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