Last week, China's silicone market continued its consolidation pattern. The mainstream price of DMC (dimethylcyclosiloxane) remained in the range of RMB 10,700-11,500/ton, with the actual average transaction price around RMB 10,700/ton. While raw material metal silicon prices weakened and methanol edged up, cost support for DMC slightly declined. Although industry operating rates increased, downstream demand recovery remained sluggish, leaving the market in a stalemate with limited upward or downward movement.

In-Depth Market Analysis

1. Price Trends

• DMC: Mainstream offers held steady, with narrowing discount margins in actual transactions

• Downstream Products: 107 rubber and raw rubber prices stabilized with localized declines of RMB 100-200/ton

• Cost Side: Metal silicon weakened (industrial grade quoted at RMB 13,200-13,500/ton), methanol rose slightly (East China spot RMB 2,620/ton)

2. Supply-Demand Situation

• Supply Side: Industry operating rate reached 70% (+2% WoW), with varying inventory levels among manufacturers

• Demand Side: Traditional seasonal characteristics failed to materialize, downstream procurement remained need-based

• Market Sentiment: Buyer-seller博弈 intensified, wait-and-see mood prevailed

3. Market Outlook
Market analysts stated: "In the absence of clear positive drivers, DMC prices are expected to continue fluctuating narrowly in the RMB 10,500-11,000/ton range, with downstream product prices following raw material movements."

Industry Impact

• Monomer Plants: Profit margins continued under pressure, some companies approached cost lines

• Downstream Enterprises: Procurement remained cautious, maintaining low inventory strategies

• End Markets: Demand recovery in construction, electronics and other industries remained slow

Key Focus Areas:
✓ Whether traditional seasonal demand in September will start as scheduled
✓ Order growth in new energy, photovoltaic and other sectors
✓ Impact of raw material price trends on costs