Prices of Silicone Products Rise Sharply

SHANGHAI, Feb 7 (SMM) - SMM DMC price stood at 17,000-17,500 yuan/mt, the average price was 200 yuan/mt higher than yesterday. The prices of 107 silicon rubber were 17,500-17,800 yuan/mt, the average price was 350 yuan/mt higher than yesterday. The prices of raw silicon rubber were 17,500-18,300 yuan/mt, the average price was 150 yuan/mt higher than yesterday. The prices of silicone oil were 19,500-20,000 yuan/mt, the average price was 250 yuan/mt higher than yesterday.

After February 5, silicone market has undergone significant changes. Although the quotations offered by enterprises increased slightly before the Chinese New Year, they actual demand failed to provide support. After February 5, most real estate projects resumed work, and the prices of silicone products finally ushered in a rise. Domestic monomer factories successively raised their prices of silicone products today, among which 107 silicon rubber increased most greatly. The prices of 107 silicon rubber in Shandong increased 400 yuan/mt to 17,800 yuan/mt, that in Zhejiang increased 300 yuan/mt to 17,500 yuan/mt. The prices quoted by leading enterprise increased 500 yuan/mt to 17,500 yuan/mt. At present, downstream enterprises have a strong willingness to restock while traders hold the prices firm amid the bullish outlook. The subsequent prices still have upward momentum.

In February, SMM expects that the prices may increase further, but are unlikely to rise sharply. According to SMM statistics, the domestic DMC inventory in January was about 100,000 mt. Although the demand increased in February, monomer factory will mainly digest the inventory under high inventory pressure.