Silicone Product Prices Rise, Trading Activity Slightly Declines [SMM Silicone Weekly Review]

SMM January 15:

Cost: On January 15, #421 silicon (used in silicone) in east China was at 10,000 yuan/mt, flat WoW, while #421 silicon in east China was at 9,650 yuan/mt, flat WoW. Spot silicon metal prices remained stable this week, with downstream procurement sentiment staying subdued. Methyl chloride prices were flat WoW, with mainstream trading at 2,000 yuan/mt, and overall costs were basically flat compared to last week.

DMC: The domestic silicone DMC market showed a phased upward trend this week, with the price center moving higher. The mainstream trading range rose to 13,700-14,000 yuan/mt, up 250 yuan/mt WoW. Regionally, monomer producers in Shandong quoted 13,700 yuan/mt, while other mainstream monomer producers quoted 14,000 yuan/mt. Demand side, from both domestic and export perspectives: domestically, most mid- and downstream customers had completed procurement before this price increase, so current purchasing is primarily rigid. Export demand exhibited policy-driven characteristics; with the clear policy window to cancel export tax rebates for primary forms of polysiloxane (tariff code 39100000) effective April 1, 2026, export-oriented mid- and downstream enterprises were spurred, leading to enhanced stockpiling willingness. Concentrated stockpiling for export orders is expected before the holiday. Supply side, overall operating rates remain relatively low at about 66%. Boosted by recent increases in trading volume, some monomer producers have orders scheduled into early February, and inventory levels have declined. Given the current tightening supply and replenishing demand, domestic silicone DMC prices are expected to hold up well in the short term. Subsequent attention should focus on fluctuations in operating rates and the progress of export order fulfillment.

Silicone oil: This week, prices for conventional viscosity dimethyl silicone oil were in the range of 15,200-15,800 yuan/mt, up 250 yuan/mt WoW. Recently, with improved trading volume, some producers have orders scheduled into early February. Additionally, stimulated by the tax rebate policy, enterprises engaged in export trade showed increased enthusiasm to rush exports.

107 silicone rubber: This week, prices for conventional viscosity silicone 107 rubber also rose, driven by increases in raw material DMC prices, with current quotations in the range of 14,200-14,800 yuan/mt, up 350 yuan/mt WoW. Although terminal markets were supported by macro tailwinds, the transmission of demand upward still faces cyclical impacts, leading some downstream players to remain cautious about market changes. New order transactions this week were mainly for rigid demand.

MVQ: The price range for MVQ was about 14,600-15,000 yuan/mt this week, up 300 yuan/mt WoW. Enhanced cost support drove the price increase. Demand side, after relatively concentrated procurement last week, market transactions this week mainly consisted of rigid restocking demand. Some buyers with rigid demand had relatively high requirements for delivery cycles, leading to a divergence in order-taking among producers.