Pre-Holiday End-User Stockpiling Nears Completion, Silicone Product Prices Fluctuate Downward [SMM Silicone Weekly Review]

SMM, January 9:

Cost: This week, the average price of #421 silicon (for silicone) in east China was 12,200 yuan/mt, down 200 yuan/mt WoW. Recently, silicon metal producers have faced significant selling pressure, and prices are expected to decline further. The price of trichlorosilane remained stable, with transaction prices in south China approaching 2,900 yuan/mt. Overall costs weakened slightly compared to last week, and the loss margin for monomer enterprises narrowed somewhat.

DMC: This week, domestic DMC prices were quoted at 12,800-13,500 yuan/mt, with low-price transactions dominating the market. The transaction center was at 12,900 yuan/mt, down 100 yuan/mt WoW. The online store opening price of DMC from Shandong monomer enterprises was 12,800 yuan/mt, a decrease of 100 yuan/mt WoW. Leading enterprises quoted DMC at 13,500 yuan/mt, with prices remaining stable, though some orders were transacted with discounts. Other domestic monomer enterprises quoted DMC at around 13,000 yuan/mt this week. However, due to weakened downstream stocking demand, order-taking was relatively average, and prices are expected to remain low in the future.

Silicone Oil: This week, domestic dimethyl silicone oil prices declined, with current market quotes at 14,000-15,800 yuan/mt and an average price of 14,900 yuan/mt, down 450 yuan/mt WoW. Recently, the sentiment for silicone oil procurement in the domestic market has dropped rapidly. Due to the impending suspension of silicone oil logistics, enterprises have been eager to take orders quickly, offering volume discounts, which has increased their willingness to sell at lower prices. While market prices have declined, some enterprises with sufficient orders on hand maintained stable high-price quotes this week, leading to significant price divergence among enterprises.

107 Silicone Rubber: This week, the price of 107 silicone rubber declined, with current quotes at 12,800-13,500 yuan/mt and an average price of 13,150 yuan/mt. As the cost-side support from DMC prices weakened recently and terminal restocking demand was largely completed, 107 silicone rubber prices have been moderately adjusted downward for sales. However, with the increasing losses faced by rubber enterprises, prices are expected to stabilize temporarily, with limited willingness for further price reductions.

Silicone MVQ: This week, the price of silicone MVQ was 13,800-14,200 yuan/mt, with an average price of 14,000 yuan/mt, remaining stable. Recently, government subsidies for home appliances and small electrical products have significantly boosted demand in the silicone MVQ sector. Downstream enterprises' procurement volumes have increased noticeably compared to previous years. The consumption sentiment in the mixed rubber market is relatively higher than for other silicone products. Supported by order demand, despite weaker costs, silicone MVQ demand has been sustained, and prices are expected to remain stable before the holiday.