DMC Prices Hit Low under Poor Orders

SHANGHAI, Mar 31 (SMM) - SMM silicone products price fell again. SMM DMC price fell 800 yuan/mt to 15,200-16,200 yuan/mt. Prices of #107 silicone rubber fell 600 yuan/mt to 16,500-17,000 yuan/mt; that of raw silicone rubber dropped 350 yuan/mt to 16,500-17,300 yuan/mt; that of silicone oil fell 500 yuan/mt to 18,500-19,000 yuan/mt.
The prices of DMC offered by monomer factories fell 800 yuan/mt from last week. The silicone products of leading enterprises dropped 500 yuan/mt, and the current DMC prices stood at 16,000 yuan/mt.
On the supply side, the operating rates of monomer factories further declined this week, hence the supply continued to decrease.

In terms of demand, the weak domestic downstream demand put pressure on the inventory.

On the whole, under the slow recovery of terminal consumption and the reduction of supply, the supply and demand of silicone were balanced. Judging from the current DMC prices, DMC companies that purchase raw materials from traders suffered losses of 1,700 yuan/mt while the profits of DMC companies with self-produced raw materials were better, but the profits were still lower than 200 yuan/mt. SMM expects that the follow-up DMC prices will remain low.