Silicone Companies' Joint Efforts to Refrain From Price Cuts Lead to Rapid Price Increases Across All Product Segments [SMM Silicone Weekly Review]

SMM, February 13:

Cost: This week, the average price of #421 silicon (for silicone) in east China was 12,150 yuan/mt, remaining stable. Recently, the demand for silicon metal across various sectors has shown mixed trends, but overall performance remained stable. Producers stood firm on quotes due to cost pressure. The price of methyl chloride also remained stable, with transaction prices in east China at 2,200 yuan/mt, showing a slight decline. Overall costs remained unchanged, and cost pressure on monomer enterprises slightly eased.

DMC: This week, domestic DMC quotations ranged from 13,000 to 13,500 yuan/mt, with market quotes rising rapidly. As of now, no transactions have been made at the adjusted prices. The opening price of DMC on the online platform of a monomer enterprise in Shandong was 13,400 yuan/mt, up 800 yuan/mt WoW. Leading enterprises quoted DMC at 13,500 yuan/mt, maintaining stable prices. Other domestic monomer enterprises quoted around 13,500 yuan/mt this week. However, these are mainly quoted prices, and downstream enterprises have not yet made purchases. It is expected that subsequent quotations will continue to rise, stimulating downstream purchases.

Silicone Oil: This week, domestic dimethyl silicone oil prices remained stable, with current market quotations ranging from 14,300 to 15,500 yuan/mt and an average price of 14,900 yuan/mt, up 150 yuan/mt WoW. Prices are expected to continue rising in the near future. With the price increase of silicone DMC this week, silicone oil prices also rose correspondingly, albeit with a smaller adjustment range. It is anticipated that traders will continue to raise prices to stimulate downstream enterprises to make purchases.

107 Silicone Rubber: This week, the price of 107 silicone rubber increased, with current quotations ranging from 13,200 to 13,800 yuan/mt and an average price of 13,500 yuan/mt, up 400 yuan/mt WoW. After monomer enterprises held a joint meeting, their quotations began to rise rapidly. Some monomer enterprises' quotations for 107 silicone rubber are approaching 14,000 yuan/mt. Although end-use demand has not fully recovered, enterprises showed strong willingness to stand firm on quotes and support the market, while preparing for the peak season in March and April. Subsequent quotations are expected to continue rising, but the pace of transaction price increases is anticipated to be slower.