Supported by Multiple Factors Including Cost and Emission Reduction, Silicone DMC Prices Continue to Rise [SMM Silicone Weekly Review]

SMM April 16 update:

Cost: On April 16, east China #421 silicon (used in silicone) was at 9,550 yuan/mt, down 50 yuan/mt WoW, and east China #421 silicon was at 9,300 yuan/mt, down 100 yuan/mt WoW. This week, silicon metal futures prices were largely stable, with futures prices fluctuating upward. Silicon enterprises held prices largely stable, while downstream players mainly digested inventories or placed orders on demand. Methyl chloride prices still had cost support, edging up before stabilizing, with market prices reaching around 2,800 yuan/mt. Therefore, the comprehensive production costs of silicone monomer enterprises still edged up slightly WoW.

DMC: This week, China's silicone DMC mainstream transaction range was 14,500-14,800 yuan/mt, up 200 yuan/mt WoW, with the transaction center leaning toward the lower end. Regionally, Shandong monomer enterprises suspended offers starting yesterday, with pre-suspension quotations at 14,500 yuan/mt, up 100 yuan/mt WoW; other regions had mainstream quotations at 14,500 yuan/mt, with individual enterprises quoting 14,600-14,800 yuan/mt. This week, supported by costs, industry emission reductions, and pre-sale orders, producers slightly raised quotations with a firm stance on holding prices; although downstream enterprises had generally sufficient raw material inventory, under the influence of rising prices, some rigid demand still entered the market for small purchases, with the overall market being generally stable with slight rise.

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. Supported by raw material costs, prices remained largely stable, but with no significant improvement on the demand side, acceptance of high prices remained cautious.

107 silicone rubber: This week, the silicone 107 silicone rubber market price remained stable, with regular viscosity market price range quoted at 14,700-15,300 yuan/mt and an average price of 15,000 yuan/mt. Demand side, driven by the recent "Golden March, Silver April" market mini-recovery, end-use demand saw a slight overall improvement, but downstream silicone sealant enterprises still had sufficient raw material inventory, and overall market transactions were mainly driven by rigid demand.

MVQ: This week, MVQ price range was approximately 15,300-15,700 yuan/mt, with an average price of 15,500 yuan/mt. Recently, MVQ spot cargo on the supply side remained tight, with enterprises having sufficient pre-sale orders and limited circulating supplies in the market, providing price support and gradually transmitting price increases downstream. Some downstream enterprises, to hedge against cost pressure from continued price rises, moderately followed up with purchases, with overall restocking mainly driven by rigid demand.