Market Review This Week

Last week, China's silicone market saw an upward trend, with a notable rise in DMC (dimethylcyclosiloxane) prices. Raw material costs showed mixed movements: metal silicon prices remained stable with partial increases, while methanol prices edged lower. Supported by stronger costs and extended tariff suspension policies, leading manufacturers in Shandong initiated price hikes, boosting market sentiment. Procurement activity increased, with more inquiries and improved transaction volumes, prompting some producers to follow suit with higher offers.

As of last week, the mainstream DMC price range was 10,700-11,500 RMB/ton, with the average transaction price around 10,900 RMB/ton. The rise in DMC prices drove a slight increase in downstream 107 silicone rubber, while raw silicone rubber, mixed rubber, and silicone oil remained largely stable with minor adjustments.

Market Analysis & Outlook

The silicone market remains firm due to cost support and recovering demand. With DMC prices climbing, downstream companies have shown higher purchasing enthusiasm, improving overall trading activity. Next week, DMC prices are expected to consolidate as the market digests recent gains, but downstream silicone products (such as 107 rubber and silicone oil) may continue a steady-to-rising trend amid cost pressure.