DMC market experiences minor price fluctuations at low levels; with high operating rates, prices are expected to remain volatile in the future [SMM Silicone Weekly Review]

Published: Jun 26, 2025 14:16
[SMM Weekly Silicone Review: DMC Market Prices Fluctuate Slightly at Lows, Expected to Remain Volatile amid High Operating Rates] This week, domestic DMC prices were quoted at 10,300-10,600 yuan/mt, with the quotation range narrowing WoW. In Shandong, monomer enterprises quoted DMC prices at 10,300 yuan/mt, up 100 yuan/mt WoW. Other domestic monomer enterprises quoted DMC prices at 10,400-10,600 yuan/mt this week. Domestic market prices at the low end increased slightly this week, with inventory pressure easing slightly for some monomer enterprises. However, the overall market remains in an oversupply situation. Due to the influence of basic cost support, DMC prices are temporarily fluctuating at lows.

SMM News on June 26:

Cost: This week, the average price of #421 silicon (used in silicone) in east China was 10,000 yuan/mt, with a price drop of 100 yuan/mt WoW. The average price of #421 silicon in east China was 8,700 yuan/mt, with prices remaining stable WoW. Recently, silicon metal prices have been fluctuating at the bottom. The price of monochlorosilane fell this week, generally oscillating around 1,800 yuan/mt. The overall cost decreased WoW, and the profits of monomer enterprises slightly increased compared to last week.

DMC: This week, domestic DMC was quoted at 10,300-10,600 yuan/mt, with the quotation range narrowing WoW. This week, DMC was quoted at 10,300 yuan/mt by monomer enterprises in Shandong, up 100 yuan/mt WoW. Other domestic monomer enterprises quoted DMC at 10,400-10,600 yuan/mt this week. Low-price quotations in the domestic market slightly increased this week, and the pressure on inventory levels for some monomer enterprises slightly eased. However, the market as a whole remained in an oversupply situation. Due to the influence of basic cost support, DMC prices mainly fluctuated at lows for the time being.

Silicone Oil: This week, silicone oil continued its downward trend. In terms of price, the market price was 13,000-13,800 yuan/mt, down about 100 yuan/mt WoW. However, the center of transaction prices leaned towards the 13,000-13,500 yuan/mt range, with significant sentiment to drive down prices in inquiries. In terms of supply, affected by inventory pressure, market competition was fierce, and low-price supplies frequently emerged. In terms of demand, there was still no substantive improvement. Purchases leaned towards rationality, with continuous small-order restocking based on immediate needs. Therefore, in the short term, the dimethyl silicone oil market in silicone is expected to continue its weak performance.

107 Silicone Rubber: This week, the 107 silicone rubber market continued its weak pattern, with market prices at 11,400-11,900 yuan/mt, but the center of transaction prices was in the 11,400-11,600 yuan/mt range. The supply side remained stable, with no signs of active production cuts for the time being. Some producers still adopted a strategy of maintaining stable prices on the surface while secretly lowering them, offering discounts to sell at low prices. Demand remained in the off-season, with terminal purchases mainly focusing on small-order restocking. Purchase willingness was low, mainly driven by immediate needs. Currently, market sentiment is mostly bearish, with inquiries mainly aiming to drive down prices. Therefore, in the short term, 107 silicone rubber prices are expected to continue to decline under pressure.

MVQ: This week, the price of silicone MVQ was 11,800-12,400 yuan/mt, with an average price of 12,100 yuan/mt, down 150 yuan/mt WoW. This week, domestic MVQ enterprises continued to offer discounts to sell, with a more intense competitive atmosphere in the market compared to the previous period. Leading enterprises also began to lower prices to sell this week. However, the performance of the demand side remained poor. With supply remaining high, the oversupply of MVQ was evident. It is expected that MVQ prices will continue to decline in the future.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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