DMC Price Center Slightly Rises, Market Transactions Dominated by Rigid Demand [SMM Silicone Weekly Review]

SMM January 22:

Cost side, #421 silicon (used in silicone) in east China was at 10,000 yuan/mt on January 22, 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 moderate market trading activity, as downstream enterprises and traders transacted as needed. Methyl chloride prices were flat WoW, with mainstream transactions at 2,000 yuan/mt, resulting in overall costs basically flat WoW.

DMC: Domestic silicone DMC market prices showed a slight rise before stabilizing this week, with the mainstream transaction range edging up to 13,800–14,000 yuan/mt, up 50 yuan/mt WoW. Regionally, monomer enterprises in Shandong quoted 13,800 yuan/mt, up 100 yuan/mt WoW, while other major monomer enterprises maintained quotes at 14,000 yuan/mt. Demand side, procurement sentiment remained cautious, as most downstream enterprises were still consuming previously purchased raw materials, leading to weak short-term restocking demand. End-use demand showed no improvement, prompting some to plan purchasing as needed by month-end or early next month. However, some small and medium-sized downstream enterprises have begun holiday preparations, with some purchasing as needed for post-holiday production, though overall procurement volume support was relatively limited. Supply side, supported by pre-sales orders, monomer enterprises maintained firm pricing sentiment recently, with operating rates remaining low. Additionally, with the Chinese New Year holiday approaching, some monomer enterprises are expected to further reduce production loads to align with holiday schedules and off-season end-use demand. In the short term, the domestic silicone DMC market is likely to remain stable.

Silicone oil: Conventional viscosity dimethyl silicone oil market prices were in the range of 15,200–15,800 yuan/mt this week, flat WoW. Current market transactions were mainly rigid procurement, but with the Chinese New Year holiday nearing, some small and medium-sized downstream enterprises started stockpiling plans for post-holiday production, though mostly in small batches and scheduled manner.

107 silicone rubber: Conventional viscosity silicone 107 rubber market price quotes were in the range of 14,200–14,800 yuan/mt this week, flat WoW. With slowing release pace of end-use demand, downstream enterprises adopted a cautious procurement attitude, currently restocking only as needed. Regarding recent macro tailwinds released in the end-use market, most downstream customers maintained a wait-and-see stance, awaiting further clarity on the specific transmission effects to end-use demand.

MVQ: MVQ prices were around 14,600–15,000 yuan/mt this week, flat WoW. Downstream rubber compound enterprises were still consuming previously purchased raw materials, and with slowing end-use demand, procurement remained relatively cautious, with market transactions mainly for rigid restocking needs.