In recent weeks, the silicone market has shown a trend of stabilization with downward pressure. Last week, DMC (Dimethyl Silicone Oil) prices remained stable but exhibited a downward trend. The prices of metallurgical silicon and methanol continued to decline, leading to a rise in bearish sentiment. With the increase in operating rates at monomer plants and insufficient downstream demand, some enterprises adjusted their quotations downward. The current mainstream DMC price range is 11400-12000 RMB/ton, with transaction prices softening. Last week, due to the decline in raw material DMC prices, products such as silicone rubber, 107 silicone rubber, silicone rubber compound, and silicone oil maintained weak stability. The cost base has fallen, coupled with poor downstream and end-market demand, resulting in a market that is visibly stable but secretly declining. With expectations of further declines in raw material DMC prices and continued weak downstream demand, it is anticipated that silicone product prices will remain stable with a downward trend in the short term.

Market Dynamics

1. DMC Prices Stabilize with Downward Trend: Last week, DMC prices remained stable but showed a downward trend, with the mainstream market price range between 11400-12000 RMB/ton, and transaction prices softening.
2. Decline in Raw Material Prices: The prices of metallurgical silicon and methanol continued to fall, leading to a decrease in cost support and intensifying bearish sentiment.
3. Weak Demand: Insufficient downstream demand led to price adjustments by some enterprises, and the overall market performance remained weak.
4. Related Product Prices Maintain Weak Stability: Affected by the decline in DMC prices, products such as silicone rubber, 107 silicone rubber, silicone rubber compound, and silicone oil maintained weak stability, with the market showing visible stability but secretly declining.

Market Analysis

The silicone market is currently facing multiple pressures:

1. Cost Base Decrease: The continuous decline in metallurgical silicon and methanol prices has weakened cost support, intensifying bearish sentiment.
2. Supply Increase: The increase in operating rates at monomer plants has added pressure to the supply side, while poor downstream demand has exacerbated the imbalance between supply and demand, further intensifying price downward pressure.
3. Weak Demand: Poor downstream and end-market demand has led to a market that is visibly stable but secretly declining, with the likelihood of demand improvement in the short term being slim.

Future Outlook

In the short term, the silicone market is expected to continue with a trend of stabilization and downward pressure:

1. Expectation of Further Decline in DMC Prices: With expectations of further declines in raw material DMC prices, bearish sentiment is likely to persist.
2. Weak Demand Remains Unchanged: Downstream demand remains weak, and it is anticipated that silicone product prices will mainly remain stable with a downward trend in the short term.

Expert Opinions

Market analysts commented: "The silicone market is currently facing significant downward pressure, mainly due to the dual impact of decreased cost support and weak demand. It is expected that the market will not show significant signs of recovery in the short term. Enterprises need to closely monitor supply and demand changes and adjust their production and inventory strategies accordingly."

Conclusion

The silicone market recently showed a trend of stabilization with downward pressure, with DMC prices remaining stable but declining, raw material prices falling, and downstream demand remaining weak, resulting in overall poor market performance. In the short term, silicone product prices are expected to continue with a trend of stabilization and downward pressure. Enterprises need to closely monitor market dynamics and adjust production and sales strategies rationally to cope with market changes.