Downstream Resistance Sentiment Increases, 107 Silicone Rubber Prices Still Show an Upward Trend [SMM Silicone Weekly Review]

SMM March 6 News:

Cost: This week, the average price of #421 silicon (for silicone) in east China was 12,100 yuan/mt, with prices temporarily remaining stable. Recently, silicon metal producers' quotations have been stable, though some orders were transacted with slight discounts. Mainstream transaction prices saw a slight decrease WoW. The price of trichlorosilane also remained stable this week, with transaction prices in east China at 2,200 yuan/mt. Overall costs were basically stable WoW.

DMC: This week, domestic DMC quotations ranged from 13,700 to 14,300 yuan/mt, with market quotations remaining relatively stable. The opening quotation for DMC on the online platform of a Shandong monomer enterprise was 13,500 yuan/mt ex-factory self pick-up, unchanged WoW. Leading enterprises quoted DMC at 14,300 yuan/mt, with stable quotations. Other domestic monomer enterprises quoted DMC at around 14,000 yuan/mt, and the market transaction center rose to 14,000 yuan/mt. However, downstream enterprises' purchase volumes were relatively small, with upstream and downstream players still in a state of negotiation. Downstream raw material inventories have not been fully consumed, and prices remained stable this week.

Silicone Oil: This week, domestic dimethyl silicone oil prices remained stable, with current market quotations at 15,000-15,800 yuan/mt and an average price of 15,400 yuan/mt. Recent demand for silicone oil has been relatively average, with downstream processors showing less willingness to purchase raw materials compared to earlier periods. Additionally, the recovery pace of end-use demand has fallen short of expectations. The silicone oil market overall maintained stable operations, with little inclination for price adjustments.

107 Silicone Rubber: This week, the transaction center for 107 silicone rubber shifted upward, with current quotations at 14,000-14,500 yuan/mt and an average price of 14,250 yuan/mt, reflecting a 200 yuan/mt increase WoW. Mainstream quotations from 107 silicone rubber enterprises remained stable this week, but low-price quotations in the market gradually disappeared, with mainstream quotations rising to 14,300 yuan/mt. Some orders were slightly discounted to 14,000 yuan/mt. The transaction center rose WoW, and downstream silicone sealant market quotations continued to increase. End-user enterprises' purchasing sentiment was slightly stimulated, with overall demand showing positive expectations. Additionally, the upcoming domestic adhesive exhibition next week is expected to further boost transactions of adhesive products, with prices anticipated to see slight increases.

Silicone MVQ: This week, silicone MVQ prices ranged from 14,300 to 15,000 yuan/mt, with an average price of 14,650 yuan/mt, remaining stable. Recently, inventories of large domestic silicone MVQ enterprises have slightly increased compared to earlier periods. Under the pressure of inventory, silicone MVQ prices remained stable this week, with destocking through discounted transactions being the primary focus.