New Silicone Monomer Capacity Accelerates Commissioning, DMC Operating Rates Rise Again in May [SMM Analysis]

This week, the DMC price on the online mall of Shandong monomer companies remained stable, with the opening price at 13,400 yuan/mt. The current DMC quotation from leading companies is maintained at 13,900 yuan/mt. Other monomer companies' DMC quotations are around 13,600 yuan/mt, with mainstream transaction prices around 13,600 yuan/mt which is stable.

In terms of prices, due to downstream restocking in May, the current raw material inventory of downstream companies has not yet been depleted, resulting in low purchasing willingness. However, monomer companies have low inventory and are also unwilling to lower prices, so prices remain stable overall. However, the prices of DMC and other products are expected to decline in the future. Downstream companies are about to start a new round of procurement plans, and monomer companies will offer discounts to secure orders; meanwhile, recent domestic monomer operating rates are high, and new capacity continues to be released, with some new capacity still to be commissioned, leading to a rapid increase in supply. According to SMM statistics, the domestic silicone DMC output in May was 207,500 mt, up 11.38% from April, and the total output from January to May 2024 was 959,400 mt, up 14.88% YoY. The increase in May output was due to the rise in production from newly commissioned capacity, and there were no shutdowns or maintenance of domestic companies in May.
SMM believes DMC will continue to rise. In June, there will be 200,000 mt of new monomer capacity to be commissioned domestically, and there are no significant maintenance plans for monomer companies, with operating rates expected to remain high. SMM expects domestic DMC output in June to slightly increase to 209,700 mt.