As the domestic silicone rubber market continues to stabilize post-holiday, the market has been under pressure in April due to the continuous decline in DMC (Dimethyl Silicone Oil) prices. As of May 6, the mainstream price of silicone rubber has dropped to 12,800-13,500 RMB/ton, showing a "first decline, then stabilize, and then bottom out" price trend throughout the month. By the end of the month, the rebound in DMC prices led to a slight increase in local silicone rubber prices. In April, the silicone rubber market experienced three key changes:

Market Change 1: Early-Month Stealth Price Cuts, Low Trading Activity

After the holiday, weak market demand forced silicone rubber manufacturers to initiate stealth price cuts to boost sales, but prices still exceeded the psychological expectations of compound rubber manufacturers, resulting in sluggish market transactions. Although some companies attempted to stimulate demand through price reductions, overall trading remained weak, with a strong atmosphere of market观望.

Market Change 2: Mid-to-Late Month Price War Triggers Bulk Purchases

Mid-to-late month, leading silicone rubber manufacturers took the lead in lowering prices to the expected bottom line of compound rubber manufacturers, stimulating A-class customers to complete their monthly rigid procurement of three truckloads. Some large-volume customers (10-20 truckloads) also received additional discounts. This round of price adjustments fueled a phase of bulk purchasing, but subsequent monomer manufacturers, with reduced negotiation space, saw a significant decline in order volumes.

Market Change 3: Late-Month Low Prices Spark Bottom-Diving Demand

By the end of the month, silicone rubber manufacturers, facing inventory pressure, offered further discounts, prompting compound rubber manufacturers to replenish stocks at low prices. Some manufacturers adopted a "volume for price" strategy, increasing batch orders, which formed a second small wave of purchasing.

DMC Price Rebound Drives Silicone Rubber Price Increases

With the DMC price bottoming out and rebounding, some silicone rubber manufacturers began to recoup earlier excessive price cuts, with quotes increasing by 200-300 RMB/ton or more. Currently, silicone rubber manufacturers are primarily fulfilling pre-holiday orders, and short-term shipment pressure has eased. Industry insiders believe that this week's silicone rubber prices may maintain narrow adjustments, with subsequent trends closely following DMC price fluctuations and downstream purchasing rhythms.

Market Outlook

If the DMC price rebound continues, the silicone rubber market is expected to stabilize temporarily; if demand fails to follow, there is a possibility of another decline. In the future, the market will closely monitor DMC price trends and downstream demand changes to determine the short- and long-term trends of the silicone rubber market.

Conclusion

The domestic silicone rubber market experienced multiple fluctuations in April, from early-month stealth price cuts to mid-to-late month price wars, and then to late-month bottom-diving demand. With the DMC price rebound, the silicone rubber market is expected to stabilize in the short term, but long-term trends will depend on supply-demand changes and the sustainability of DMC price increases.