SHANGHAI, Oct 28 (SMM) - Due to the poor demand, the in-plant inventory was high. In order to reduce the inventory, monomer companies lowered prices to promote transactions. The silicone prices offered by some companies fell to the cost line. In order to reduce the losses, monomer companies undertook maintenance in advance. According to the plan, domestic monomer companies undertook maintenance intensively.
According to SMM, at present, the operating rates of domestic silicone enterprises only stood at about 60%, affecting annual production capacity of about 2.25 million mt. Amid the last week of October, DMC prices rebounded slightly as downstream enterprises were recently affected by the panic caused by the increase in maintenance devices. Downstream enterprises stockpiled in small batches and transactions increased. The actual terminal demand still performed poorly, and the real estate, electronic appliances and other fields also performed weakly. The current market was still oversupplied. SMM believes that silicone prices may rebound affected by the decline in supply.
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