SMM, April 23:
Cost: On April 23, the average price of #421 silicon (used in silicone) in east China was 9,550 yuan/mt, unchanged WoW, and the average price of #421 silicon in east China was 9,300 yuan/mt, also unchanged WoW. Spot silicon metal prices remained stagnant this week, with #421 silicon (used in silicone, east China) at 9,300-9,800 yuan/mt, and downstream users mainly made procurement at the lower end of the range. Methyl chloride prices rose 600 yuan/mt WoW to around 3,400 yuan/mt. The comprehensive production costs of silicone monomer enterprises rose WoW, adding to cost pressure.
DMC: This week, China's DMC market quotes mainly rose to 14,800-15,200 yuan/mt, while the most-traded transactions were concentrated at 14,700-14,800 yuan/mt, with the weekly average transaction price up 100 yuan/mt WoW. Regionally, Shandong monomer enterprises opened today with quotes at 14,700 yuan/mt, up 200 yuan/mt WoW. Some other enterprises raised quotes by 200-300 yuan/mt last Friday to 14,800-15,000 yuan/mt, and some individual producers further raised quotes by around 200 yuan/mt this week to 15,200 yuan/mt. The sustained price increase this round was supported by earlier raw material cost rises and further driven by tightening industry supply, which led to tight spot cargo circulation and pushed prices higher. Demand side, with upstream supply tightening, delivery cycles extending, and spot cargo being tight, some mid- and downstream enterprises showed greater acceptance of high-priced supplies to ensure order fulfillment. However, overall procurement volume remained dominated by just-in-time procurement with cautious rush to buy amid continuous price rise. Additionally, as month-end and the Labour Day holiday approach, downstream enterprises' earlier inventory was gradually depleted. Pre-holiday stockpiling expectations warmed up, and subsequent just-in-time restocking is expected to see phased release, which will also provide phased support for prices.
Silicone oil: This week, the silicone dimethyl silicone oil market price remained stable, with regular viscosity prices at 15,700-16,300 yuan/mt and an average price of 16,000 yuan/mt. Affected by tightening upstream raw material supply and high cost support, silicone oil producers had tight spot cargo availability and mostly limited their production schedules. Under such circumstances, some downstream enterprises, to ensure normal order delivery without compromising product quality, made small purchases of similar products as raw material substitutes.
107 silicone rubber: This week, the regular viscosity market price range for silicone 107 silicone rubber was quoted at 14,700-15,300 yuan/mt, with an average price of 15,000 yuan/mt. Currently, upstream producers' order-taking remained mainly driven by just-in-time procurement, with no concentrated procurement yet. However, as month-end and the Labour Day holiday approach, phased procurement release is expected, and overall transactions may see some improvement.
MVQ: This week, the MVQ price range was approximately 15,300-15,700 yuan/mt, with an average price of 15,500 yuan/mt, running firm at high levels. Demand side, overall trading continued at a pace of following rigid demand, with no large-scale concentrated restocking for the time being. Market purchasing showed clear divergence: some downstream enterprises with relatively low raw material inventory, in order to maintain normal production and fulfill existing orders, showed increased acceptance of current high-priced supplies and made small purchases as needed; while manufacturers with sufficient prior stockpiling mostly maintained a wait-and-see sentiment, refraining from bulk purchases for now, waiting for the concentrated purchasing period of leading major manufacturers.
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