Joint Efforts to Refrain from Price Cuts: Silicone DMC Prices Rose Again [SMM Analysis]

This week, silicone monomer enterprises raised their quotations again after nearly two weeks of stability. This week, Shandong monomer enterprises slightly increased the online DMC price, with the opening price rising by 100 yuan/mt to 13,800 yuan/mt. Leading enterprises maintained stable DMC prices, with current quotations at 14,200 yuan/mt. Other monomer enterprises raised DMC quotations to around 14,000 yuan/mt, with the transaction focus rising WoW. Downstream enterprises made appropriate purchases.

At the beginning of the week, some domestic monomer enterprises raised the DMC quotation by 200 yuan/mt to 14,000 yuan/mt, then temporarily stabilized the price and waited for the downstream market to digest before adjusting again. As of now, the domestic DMC market transaction focus is 14,000 yuan/mt, up from last week. According to SMM, the main reason for the price increase this week is the joint efforts of monomer enterprises to refrain from price cuts. Since September, peak season demand has led to an increase in orders, and enterprise inventory levels are relatively low compared to earlier. However, after the previous price increase, downstream enterprises' willingness to purchase has decreased. From early September to now, order volume has mainly seen a slight increase, but downstream enterprises' willingness to accept high prices has begun to weaken. The support for further price increases is not strong, so this price adjustment is mostly due to joint operations by enterprises. Actual downstream demand has grown, but the increase is limited. Recently, there is an expectation of increased production, with monomer enterprises in north and east China starting to increase operating loads, which increases supply pressure. Meanwhile, overseas demand has slightly weakened, affecting enterprises' pricing mindset.

For future price forecasts, SMM believes that the DMC transaction focus will continue to have a slight upward trend. The main reason is that the current domestic transaction range is relatively large, and mainstream enterprises' quotations are all above 14,000 yuan/mt. The low transaction price is 13,800 yuan/mt. It is expected that recent orders will mainly flow to low-priced enterprises. As orders increase, prices will slightly rise, with an expected increase range of 100-300 yuan/mt.