What were reasons behind the falling prices of silicone products? 

DMC prices in the online shopping mall of Shandong-based plants opened at 15,500 yuan/mt this week, down 300 yuan/mt WoW. Offers from leading DMC plants were 15,200 yuan/mt this week, down 1,300 yuan/mt, while those from other plants were 15,300 yuan/mt. Mainstream transaction prices dipped by 400 yuan/mt WoW.
Price war among Shandong-based DMC plants kept dragging down DMC prices. Traded prices plummeted to 15,300 yuan/mt. On the evening of March 27, major DMC prices dipped by 1,300 yuan/mt WoW to a low of 15,200 yuan/mt, so did other silicone products: MVQ (16,600 yuan/mt, -1,400 yuan/mt WoW); 107 silicon rubber (15,300 yuan/mt, -700 yuan/mt WoW); silicone oil (16,200 yuan/mt, -800 yuan/mt WoW).
These were the main reasons for DMC price slip this week. Buyers showed low acceptance of rising mainstream DMC prices to 17,000 yuan/mt, and currently possess ample feedstock stocks that will still take nearly half a month to be consumed. In addition, domestic DMC plants delivered the pre-sale orders towards the end of March, and geared up for new orders in April, likely cutting prices. Downstream sector was mainly in wait-and-see mindset. To sum up, weak buying, pre-sale orders for April and earlier long-lasting offer hike made DMC prices crash.
Looking forward, SMM expects stable DMC prices after a drop. In spite of major DMC prices adjusted to the lowest level, buyers will aim to meet their rigid demand with the end of peak season. In addition, DMC plants are fiercely competing for new orders for April. Overall DMC prices will keep dropping to the break-even level, and then stabilise. Meanwhile, early maintenance and production cuts may take place. DMC prices may creep down to 14,800 yuan/mt.