Silicone is a type of polymer material containing silicon structure. DMC (dimethylsiloxane mixed ring) is the most basic and most benchmarking monomer raw material in the industrial chain. Its price changes will be transmitted to downstream products such as silicone oil, 107 rubber, and compound rubber.
According to data from SunSirs, the reference price of domestic organic silicon DMC was 14,600 yuan/ton in early November. It fell back to 13,800 yuan/ton on November 12, with a cumulative decline of approximately 5.48% during the month. The mainstream transaction price further dropped to 13,500 yuan/ton, according to nearby business agency Metal.com.
The main reasons for the weakening prices are demand and expectations. There are insufficient orders for downstream sealant, rubber, silicone oil and other links. Procurement is mainly based on "on-demand replenishment and small batch acquisition", and the market has a strong wait-and-see sentiment. Although some devices have undergone maintenance and technical transformation, the industry's operating rate is still above 60%. The implementation of the production reduction plan at the beginning of the month is limited. Supply pressure has forced companies to make deals at a discount. Affected by this, the prices of silicone oil, 107 rubber and compound rubber fell slightly simultaneously.
In the short term, cost support and weak demand are at odds with each other, and prices are likely to remain weak and volatile; subsequent trends require attention to the implementation of factory production cuts and whether downstream orders can be released in a concentrated manner.