Downstream Procurement Sentiment Rises, Silicone DMC Transaction Center Moves Upward [SMM Silicone Weekly Review]

SMM, February 20:

Cost: This week, the average price of #421 silicon (for silicone) in east China was 12,150 yuan/mt, temporarily stable. Although the futures market mainly fluctuated, prices remained stable due to cost support from spot producers. The price of methyl chloride also remained stable, with transaction prices in east China at 2,200 yuan/mt, keeping the overall cost unchanged.

DMC: This week, domestic DMC quotations ranged from 13,400 to 13,800 yuan/mt, with market quotations rising again and transaction prices slightly increasing. The opening quotation for DMC on the online platform of a monomer enterprise in Shandong was 13,400 yuan/mt, temporarily stable. Leading enterprises quoted DMC at 13,800 yuan/mt, an increase of 300 yuan/mt. Other domestic monomer enterprises quoted DMC at around 13,500 yuan/mt. Downstream enterprises entered the market for procurement, with trading volume increasing WoW, and the market transaction center also rose to 13,500 yuan/mt.

Silicone Oil: This week, domestic dimethyl silicone oil prices remained stable, with current market quotations ranging from 15,000 to 15,700 yuan/mt and an average price of 15,350 yuan/mt, up 450 yuan/mt WoW. With the recovery of downstream demand and the rise in the cost side, silicone oil market quotations increased this week. Leading enterprises also raised quotations, boosting downstream market purchasing sentiment, and the trading atmosphere improved compared to last week.

107 Silicone Rubber: This week, the price of 107 silicone rubber increased, with current quotations ranging from 13,500 to 14,200 yuan/mt and an average price of 13,850 yuan/mt, up 350 yuan/mt WoW. Leading enterprises raised quotations by 300 yuan/mt again this week, and some rubber enterprises received a large number of orders. Downstream buyers made early purchases in anticipation of price increases. Additionally, the upward shift in the DMC transaction center provided some cost support for 107 silicone rubber, leading to a slight price increase.

Silicone MVQ: This week, the price of silicone MVQ ranged from 14,300 to 15,000 yuan/mt, with an average price of 14,650 yuan/mt, up 400 yuan/mt WoW. The domestic silicone MVQ market showed positive consumption sentiment this week. National subsidies continued to stimulate consumption sentiment in the electrical appliance market, slightly improving silicone MVQ trading sentiment. Leading enterprises also made small price increases, further boosting market purchasing sentiment. It is expected that the transaction center for silicone MVQ will continue to move upward.