Pre-Holiday Logistics Suspension Expected to Boost Bidding Atmosphere, Silicone Product Prices Weaken [SMM Silicone Weekly Review]

SMM, January 16:

Cost: This week, the average price of #421 silicon (for silicone) in east China was 12,150 yuan/mt, down by 50 yuan/mt WoW. Recently, the spot silicon metal market has faced persistent selling pressure, with producers showing an increased willingness to sell at discounted prices, leading to price declines. The price of methyl chloride slightly decreased, with transaction prices in south China at 2,800 yuan/mt, down by 100 yuan/mt WoW. Overall, costs have declined, alleviating losses for monomer enterprises.

DMC: This week, domestic DMC prices were quoted at 12,500-13,100 yuan/mt, with market prices starting to decline. The transaction center was at 12,700 yuan/mt, down by 200 yuan/mt WoW. The online store opening price of DMC from monomer enterprises in Shandong was 12,800 yuan/mt, remaining stable. Leading enterprises quoted DMC at 13,500 yuan/mt, with prices holding steady. However, offline market transactions were generally lower, with the lowest transaction price dropping to 12,500 yuan/mt. Other domestic monomer enterprises quoted DMC at around 12,700-12,800 yuan/mt this week, with most orders scheduled for post-holiday delivery. Spot transactions were limited due to the impending suspension of logistics operations.

Silicone Oil: This week, domestic dimethyl silicone oil prices decreased at the high end, with current market quotes at 14,000-15,500 yuan/mt and an average price of 14,750 yuan/mt, down by 150 yuan/mt WoW. The operating rate on the supply side of silicone oil remains high. As the Chinese New Year approaches and logistics gradually halt, year-end stockpiling is nearing completion, and market trading volume is expected to decrease gradually. The overall market is in oversupply, with enterprises facing significant inventory pressure. Additionally, cost-side support from DMC prices is weakening, and silicone oil enterprises are expected to continue selling at low prices in the near term.

107 Silicone Rubber: This week, the price of 107 silicone rubber declined, with current quotes at 12,700-13,500 yuan/mt and an average price of 13,100 yuan/mt, down by 50 yuan/mt WoW. Recently, 107 silicone rubber producers in east China slightly reduced prices, but market trading sentiment remained weak after the price drop. Although major producers continued to stimulate stockpiling sentiment with low prices, downstream enterprises were mostly cautious about purchasing 107 silicone rubber, especially as DMC pre-order prices for post-holiday delivery declined, resulting in limited trading volume.

Silicone MVQ: This week, silicone MVQ prices were at 13,600-14,200 yuan/mt, with an average price of 13,900 yuan/mt, down by 100 yuan/mt WoW. Leading domestic silicone MVQ enterprises began reducing prices to promote sales, with transaction prices in south China quickly dropping to 13,600 yuan/mt. As leading enterprises adjusted prices downward, other silicone MVQ enterprises followed suit with appropriate price adjustments, focusing on taking orders through discounts. This led to a rapid downward shift in the domestic silicone MVQ transaction center, with mainstream transaction prices falling to around 13,800 yuan/mt.