Silicone Overall Product Price Center Shifted Slightly Upward, Weekly Market Trading Atmosphere Was Subdued [SMM Silicone Weekly Review]

SMM May 14:

Cost: On May 14, the average price of #421 silicon (used in silicone) in east China was 9,650 yuan/mt, up 100 yuan/mt WoW, and the average price of #421 silicon in east China was 9,500 yuan/mt, up 100 yuan/mt WoW. Within the week, capital sentiment in the silicon metal market cooled, prices returned to fundamentals-driven logic, futures prices weakened, and silicon enterprise quotations were basically stable. Methyl chloride prices were stable WoW, with market prices at around 3,200 yuan/mt. The comprehensive production cost of silicone monomer enterprises still saw a slight increase WoW.

DMC: This week, the transaction center of China's silicone DMC market edged up slightly, with the mainstream transaction range at 14,800-15,000 yuan/mt, up 50 yuan/mt WoW. Regional quotations: monomer enterprises in Shandong quoted 14,800 yuan/mt, up 100 yuan/mt WoW; monomer enterprises in north-west China lowered their online store prices by 800 yuan/mt to 15,100 yuan/mt; mainstream quotations in other regions were mainly at 15,000-15,200 yuan/mt. Currently, mid- and downstream enterprises were mainly consuming inventory, so overall market transactions this week were limited to small volumes of just-in-time procurement.

Silicone oil: This week, supported by relatively strong cost support, the silicone dimethyl silicone oil market saw regular viscosity prices at 16,200-16,700 yuan/mt, with an average price of 16,450 yuan/mt, up 250 yuan/mt WoW. Supply side, under the impact of limited raw material supply, some producers continued to adopt volume-limiting strategies.

107 silicone rubber: This week, the market transaction price range for regular viscosity silicone 107 silicone rubber was quoted at 15,000-15,400 yuan/mt, with an average price of 15,200 yuan/mt, up 200 yuan/mt WoW. Driven by cost, the transaction center edged up slightly. However, end-use demand recovery was slow, and traditional sectors were gradually entering the off-season. Downstream silicone sealant enterprises mostly adopted a wait-and-see attitude toward subsequent market demand changes, resulting in weak purchase willingness for raw materials and low acceptance of high prices, with inventory consumption remaining the primary approach. Supply side, under cost inversion, the operating rate decreased accordingly and supply contracted.

MVQ: This week, the MVQ price range was approximately 15,500-15,900 yuan/mt, with an average price of 15,700 yuan/mt, up 200 yuan/mt WoW. Supported by cost, the price center edged up slightly. Demand side, some downstream enterprises had already completed phased procurement needs last week, and current market transactions were mediocre.