Last week, the dimethylcyclosiloxane (DMC) market exhibited mixed trends, with prices stabilizing in most regions while experiencing localized declines. The downward movement of metal silicon prices and a modest increase in methanol costs weakened overall cost support for the sector.

Market Overview

• DMC Price Range: CNY 11,800-12,500/ton

• Average Transaction Price: Approximately CNY 12,150/ton

• Market Sentiment: Downward pressure persists as buyers anticipate further price drops

Most monomer producers maintained firm pricing to fulfill pre-sale orders, though some factories facing inventory pressure opted for competitive pricing, leading to a slight softening in transaction levels. Downstream buyers remained cautious, adopting a wait-and-see approach amid expectations of additional declines.

Downstream Sector Performance

Prices for key derivatives—including 107 silicone rubber, raw silicone rubber, compounded rubber, and silicone oils—remained stable despite the DMC dip. While DMC shows potential for further decreases, producers of rubber products have demonstrated strong price resistance, resulting in a continued standoff between buyers and sellers.

Short-Term Outlook

Industry analysts predict organic silicone product prices will remain steady but under pressure in the coming week, with DMC volatility and downstream demand dynamics being critical factors to monitor.