Purchasing Sentiment Remains Sluggish, DMC Quotation Stable at the 13,000 Mark [SMM Analysis]

SMM, December 27: This week, silicone monomer producers maintained their quotes at 13,000 yuan/mt, but downstream market purchasing enthusiasm was relatively limited, resulting in low overall trading volume. The current mainstream transaction prices in the market remained stable at 12,900 yuan/mt, with few high-price transactions. Additionally, some low-priced cargoes were still circulating in the market.

Chart: Silicone Product Price Trends

This week, domestic monomer producers kept DMC prices stable. Shandong monomer producers raised their DMC quotes to 12,900 yuan/mt this week, while other monomer producers' quotes were mostly at 13,000 yuan/mt. However, according to SMM, although quotes surpassed the 13,000 yuan/mt threshold, market purchasing sentiment remained moderate after producers stood firm on quotes. Downstream enterprises mainly adopted a wait-and-see approach, primarily because downstream enterprises had previously restocked based on rigid demand, and their raw material inventories have not yet been depleted. Moreover, few enterprises plan to restock before the New Year holiday, with most planning to purchase after the holiday. As a result, this week's market trading volume was relatively limited, dominated by low-priced rigid demand transactions.