The bidding atmosphere was intense, and the transaction price of silicone DMC continued to decline [SMM Silicone Weekly Review].

SMM April 24 News:

Cost side, the average price of #421 silicon (for silicone) in east China this week was 11,350 yuan/mt, down 200 yuan/mt WoW. The average price of #421 silicon in east China was 10,450 yuan/mt, down 250 yuan/mt WoW. Domestic silicon metal producers continued to lower their quotations, and the continuous decline in futures prices affected the downward adjustment of spot quotations, putting pressure on spot prices. Against the backdrop of declining demand, silicon metal prices are expected to continue to fall. The price of monochloride remained stable this week, with the transaction price in east China at 2,200 yuan/mt. The comprehensive cost decreased WoW, and the profits of monomer enterprises continued to decline.

DMC: Domestic DMC quotations this week ranged from 11,200 to 12,000 yuan/mt, with the average price down 1,000 yuan/mt WoW. The opening quotation of DMC on the online mall of a Shandong monomer enterprise was 11,500 yuan/mt, and the second bid was 11,300 yuan/mt, a significant decrease WoW. The quotation of DMC from leading enterprises remained unchanged at 14,800 yuan/mt. Quotations from other domestic monomer enterprises dropped to around 12,000 yuan/mt this week, and quotations began to loosen. The transaction price of the domestic DMC market fell significantly this week. As domestic bidding started, DMC quotations continued to decline, but downstream enterprises' purchasing sentiment remained limited, with only some enterprises buying the dip. The trading volume recovered, but the inventory level of monomer enterprises remained high. It is expected that DMC prices will mainly fluctuate at lows in the short term.

Silicone oil: The mainstream quotations for dimethyl silicone oil this week ranged from 14,000 to 14,800 yuan/mt, with a slight decrease WoW. Actual transactions were conducted on a case-by-case basis, leaving room for negotiation. Under the overall downward trend of the silicone market, the price fluctuation of dimethyl silicone oil was relatively small, but end-use demand remained weak, and the purchasing enthusiasm for dimethyl silicone oil was not high. Although there were small orders at current prices, the overall market demand did not improve significantly due to price fluctuations. Downstream sentiment was cautious, and purchasing was mainly as needed.

107 silicone rubber: The "price war" in the 107 silicone rubber market continued this week, with mainstream quotations ranging from 12,000 to 13,000 yuan/mt, and the average weekly decline reached 350 yuan/mt, a drop of 2.7%. Prices continued to decline, and continuous price adjustments failed to effectively stimulate downstream demand. The overall market was severely lacking in confidence under the background of the price war. On the supply side, monomer enterprises recently started to implement production reduction and shutdown plans, and the current operating rate of the monomer industry was only 56%-57%, reducing production supply, but the overall supply remained in a state of oversupply. On the demand side, prices continued to decline, and with the approaching Labour Day holiday, some downstream producers began to replenish stocks, but overall market demand remained weak, and current demand was mainly rigid.