DMC Bottom Support Strengthened, Price Expected to Rebound [[SMM Silicone Weekly Review]]

SMM News on April 30:

Costs: This week, the average price of #421 silicon (used in silicone) in east China was 11,000 yuan/mt, down 250 yuan/mt WoW. The average price of #421 silicon in east China was 10,300 yuan/mt, down 150 yuan/mt WoW. Domestic silicon metal producers continued to lower their quotes this week. Affected by sluggish demand, producers were eager to sell through price competition, and prices were expected to continue to decline. The price of monochlorosilane fell slightly this week, with the transaction price in east China at 2,100 yuan/mt. The comprehensive cost decreased WoW, and the profits of monomer enterprises recovered somewhat.

DMC: This week, domestic DMC was quoted at 11,300-11,800 yuan/mt, with the average price down 50 yuan/mt WoW. This week, the lowest opening quote for DMC on the online mall of a monomer enterprise in Shandong was 11,300 yuan/mt, with transactions approaching 11,000 yuan/mt. Subsequently, the price rebounded to 11,500 yuan/mt. The DMC quote of a leading enterprise was 14,800 yuan/mt, remaining unchanged for the time being. Other domestic monomer enterprises quoted DMC at around 11,500 yuan/mt this week. This week, the transaction price of DMC in the domestic market first fell and then rose. The market recently saw a strong atmosphere of price competition. As individual enterprises priced DMC at 11,000 yuan/mt, downstream enterprises entered the market to buy the dip, and the trading volume recovered rapidly. This week, the inventory of some monomer enterprises even showed a downward trend. With the recovery of trading, DMC quotes began to increase slightly, and the transaction price recovered to 11,500 yuan/mt.

Silicone oil: The dimethyl silicone oil market remained in the doldrums this week, but transactions were sluggish. In terms of prices, market quotes ranged from 14,000 to 14,800 yuan/mt, with some room for negotiation in actual transactions. On the supply side, although there were partial maintenance works at plants in southwest and north China recently, with the maintenance period in southwest China expected to last until mid-May, the overall industry inventory remained relatively large. On the demand side, export orders for textile auxiliaries and daily chemicals remained weak, and domestic downstream enterprises mainly made just-in-time procurement, prolonging the negotiation period. Therefore, the overall market was still in a state of supply surplus.

107 silicone rubber: This week, the market for 107 silicone rubber continued to show weak demand and price reductions. In terms of prices, market quotes ranged from 11,800 to 12,800 yuan/mt, with an average decrease of 200 yuan/mt during the week. Affected by high inventory pressure, producers continued to offer volume discounts, causing actual transaction prices to fall again. On the demand side, although the holiday was approaching and downstream buyers were replenishing their stocks on a small scale, the overall market demand remained sluggish, with procurement still mainly driven by just-in-time needs.