Increased supply and slightly decreased demand lead to a slight downward shift in the price center of silicone market products [SMM Silicone Weekly Review]

SMM June 5:

Cost: This week, the average price of #421 silicon (used in silicone) in east China was 10,300 yuan/mt, a decrease of 200 yuan/mt WoW. The average price of #421 silicon in east China was 8,800 yuan/mt, a decrease of 300 yuan/mt WoW. Domestic silicon metal producers' quotations this week: With monomer enterprises recently increasing their operating rates, silicon metal producers began to lower their quotations to compete for orders, offering discounts to take orders. The price of monochlorosilane remained stable this week, oscillating within an overall range of around 2,100 yuan/mt. The comprehensive cost decreased WoW, and monomer enterprises' profits continued to increase.

DMC: This week, domestic DMC was quoted at 11,300-11,600 yuan/mt, with the average price dropping slightly by 50 yuan/mt WoW. This week, the opening quotation for DMC on the online mall of a monomer enterprise in Shandong was 11,400 yuan/mt, maintaining stability WoW. Other domestic monomer enterprises quoted DMC at 11,500-11,600 yuan/mt this week. This week, the transaction prices of DMC in some domestic markets fell. Terminal demand weakened somewhat, and some enterprises with slightly higher inventory levels appropriately lowered their prices slightly, mainly offering discounts to take orders.

Silicone oil: The dimethyl silicone oil market continued to be in the doldrums this week. In terms of price, the market price of domestic dimethyl silicone oil was 13,600-14,100 yuan/mt, with some room for negotiation in actual transactions. In terms of demand, downstream enterprises currently remain bearish on the overall market, with transactions being more rational and purchases being more cautious, mainly focusing on restocking based on immediate needs. In terms of supply, affected by the current sluggish market environment, production enterprises' shipment pace is slow, putting certain pressure on production site inventory. Therefore, producers mostly adopt a discount strategy for shipments. In the short term, the temporarily stable price of raw material DMC provides some support for the price of dimethyl silicone oil, so the market will continue to be in the doldrums.

107 silicone rubber: The silicone 107 silicone rubber market was in the doldrums this week. In terms of price, the market price was 11,800-12,400 yuan/mt, with some room for negotiation in actual transactions. In terms of cost, DMC remained stable, providing some support for the price of 107 silicone rubber. In terms of supply, the previously overhauled units have gradually entered the normal operation stage, and the supply is expected to increase slightly. In terms of demand, the real estate market, one of the main demand sectors, is currently in an off-season cycle, with the operating rate of new housing starts at a low level, leading downstream enterprises to be relatively cautious in procurement, mainly focusing on restocking based on immediate needs. In the short term, there is no positive stimulus for terminal demand in the silicone 107 silicone rubber market, and the market will continue to be in a weak and stable state.