At the end of July, China's silicone monomer producers collectively initiated a new round of "quote suspension" strategy, building momentum for price hikes amid strong pre-sale order volumes. Following last week's DMC price breakthrough of 11,000 RMB/ton, major monomer plants have again suspended quotations this week, sending strong bullish signals that have sharply increased procurement hesitancy among mid-downstream enterprises.

Market Tension Analysis

1. Upstream's Firm Pricing Stance

• Sustained high metal silicon costs (East China 553# maintained at 13,500-13,800 RMB/ton)

• Monomer plants' pre-sale orders booked until mid-August with low inventory pressure

• Industry-wide "anti-involution" consensus driving coordinated output control

1. Downstream Demand Constraints

• Silicone rubber processors typically hold 10-15 days of raw material inventory

• No significant recovery in end-use sectors (construction/electronics)

• Some SMEs have halted high-price material purchases

Price Forecast

Trading Strategy
▶ Monomer plants: Release spot goods in batches to avoid demand suppression
▶ Midstream: Small orders for urgent needs; defer non-critical purchases to early August
▶ End-users: Secure long-term contracts to hedge volatility

Risk Alert
⚠️ Beware "nominal pricing" risk: Potential August correction if downstream resistance persists
⚠️ Monitor Zhejiang power restrictions' impact on monomer operations