Silicone Market Sees Ongoing Tug-of-War Between Sellers and Buyers, Pre-Holiday Actual Transactions Remain Weak [SMM Silicone Weekly Review]

SMM, September 24:

Cost: On September 24, the average price of #421 silicon (used in silicone) in east China stood at 9,700 yuan/mt, flat MoM, while the average price of #421 silicon in east China was 9,550 yuan/mt, also flat MoM. This week, silicon enterprises held quotations steady, with firm sentiment to hold prices, coupled with downstream stockpiling ahead of the holiday. The average price of methyl chloride this Monday was 3,600 yuan/mt, flat MoM. The comprehensive production cost of silicone monomer enterprises remained stable WoW.

DMC: This week, domestic silicone DMC market transactions edged lower, with an average price of 14,600 yuan/mt. During the week, after one monomer plant lowered its DMC offer to 14,500 yuan/mt, other monomer plants maintained their previous offers, showing strong willingness to hold prices firm ahead of the holiday. On the raw material side, #421 silicon metal (used in silicone) in east China remained firm, and imported methanol prices rose this week, providing some support to silicone DMC prices. On the supply side, the operating rate of monomer plants rose slightly WoW this week. On the demand side, downstream clients maintained a strong wait-and-see sentiment, with actual transaction price centers consolidating on a subdued note, and pre-holiday deals followed just-in-time procurement.

Silicone oil: This week, the market price of conventional-viscosity dimethyl silicone oil remained stable, with a quotation range of 15,800-15,900 yuan/mt and an average price of 15,850 yuan/mt, flat WoW. On the cost side, raw material DMC stayed at highs, supporting silicone oil enterprises to hold firm quotations, but downstream purchasing enthusiasm was low, and overall pre-holiday market transactions were sluggish.

107 silicone rubber: This week, the market price of conventional-viscosity 107 silicone rubber remained stable, with a quotation range of 14,500-14,700 yuan/mt and an average price of 14,600 yuan/mt. The price of 107 silicone rubber continued to stay on par with DMC, and some enterprises even saw inverted prices. On the demand side, as 107 silicone rubber remained at highs, some downstream silicone sealant enterprises issued a new round of price increase letters this week, attempting to pass costs downstream, but the recovery in the terminal real estate market was limited, making actual price hikes difficult to implement. Downstream silicone sealant enterprises mainly made just-in-time procurement, and pre-holiday actual transactions were weak.

MVQ: This week, the market price of MVQ remained stable overall, with a quotation range of 15,400-15,700 yuan/mt and an average price of 15,550 yuan/mt. Although DMC prices saw localized adjustments, they remained stable at highs overall, providing strong cost support for MVQ. Currently, producers hold low inventory and shipments are slow, keeping MVQ spot supply tight. On the demand side, earlier price increases did not pass downstream smoothly, end-users showed limited acceptance of high prices, and downstream rubber compounders maintained a just-in-time procurement pace before the holiday.

Overall, the market remained in a stalemate, with monomer plants showing strong willingness to hold prices firm before the holiday, demand side mainly making just-in-time restocking, and pre-holiday actual transactions weak. In the short term, silicone prices will consolidate on a subdued note, with attention needed on whether monomer plants adjust prices three days after the Mid-Autumn Festival and on changes in downstream stockpiling pace.