Costs rise again, silicone DMC prices rebound from lows [SMM Silicone Weekly Review]

SMM July 10 news:

Cost side, the average price of #421 silicon (used in silicone) in east China was 10,000 yuan/mt this week, remaining stable. The average price of #421 silicon in east China was 9,100 yuan/mt, up 100 yuan/mt WoW. Spot silicon metal prices rose slightly recently, but downstream acceptance willingness declined. The rebound momentum of futures narrowed, and the silicon metal price increase began to slow down. The price of monochlorosilane rose slightly this week, with mainstream transactions at 1,900 yuan/mt. Comprehensive costs increased WoW, and monomer enterprises faced greater cost pressure.

DMC: This week, a Shandong-based monomer enterprise quoted DMC at 10,700 yuan/mt, a significant increase. Other domestic monomer enterprises raised DMC offers to 11,000 yuan/mt. Domestic market prices rose this week, but transactions were limited as downstream enterprises adopted a wait-and-see approach. The price increase was mainly driven by rising silicon metal prices, which strengthened cost support for silicone. Monomer enterprises faced intensified cost pressure, leading to higher DMC quotes. However, actual demand remained sluggish, with downstream procurement sentiment slightly stimulated but mainly focused on price negotiations.

Silicone oil: The dimethyl silicone oil market was in the doldrums this week. Prices ranged from 12,600-13,400 yuan/mt, with actual transactions mostly at the lower end. Supply side, multiple small and medium-sized plants in central and south China planned maintenance and production cuts due to persistent high temperatures, leading to an expected slight supply decrease. Demand side, major end-use sectors remained weak, with downstream enterprises making just-in-time procurement. Overall market activity was sluggish. In the short term, the dimethyl silicone oil market is expected to remain in the doldrums.

107 silicone rubber: The 107 silicone rubber market showed a tug-of-war between strong cost-driven increases and weak demand this week. Price side, the market was in the doldrums early in the week. From Wednesday onwards, driven by a sudden daily price jump of raw material DMC, the price range for conventional viscosity 107 silicone rubber reached 11,000-11,500 yuan/mt, up about 100 yuan/mt from early week. However, demand side, order intake remained poor, maintaining small just-in-time procurement. Lack of end-use orders further dampened market confidence. Supply side, production operated normally with a surplus trend. Overall, the current price increase was solely cost-driven, with no signs of end-use demand improvement.