According to the monitoring data of the business community, as of October 26, 2022, the reference price of the domestic silicone DMC market was 17640 yuan/ton. Compared with the price on October 1, 2022 (the reference price of the silicone DMC was 18200 yuan/ton), the price decreased by 560 yuan/ton, or 3.08%.

It can be seen from the data monitoring chart of the business community that since October (10.1-10.26), the overall domestic silicone DMC market has shown a weak downward trend, and the market focus has been gradually explored in the sorting process. The main factors influencing the decline of silicone DMC market are as follows:

1、 On the demand side, after the National Day holiday, the silicone DMC market started steadily. However, after the festival, the demand side was cautious, the downstream had a strong wait-and-see attitude, and the market mentality was general. The overall stock removal after the festival was less than expected. In the middle of October, with insufficient demand support, some manufacturers began to reduce the price of organic silicon DMC, with a reduction rate of 200-500 yuan/ton.

2、 In terms of cost, after the National Day holiday, although the metal silicon market was operating at a high level, due to the general impact of trading orders, most monomer plants still actively took orders by exchanging price for quantity. Therefore, the overall support of cost was general.

3、 In terms of supply, in October, the overall inventory of silicone DMC was under pressure, the shipment was slow, the downstream replenishment was rigorous, and the contradiction between supply and demand was prominent.

Near the end of the month, the overall market situation of silicone DMC has a slight recovery trend. Since October 24, Shandong Dachang has raised the ex factory price of silicone DMC twice, with a cumulative increase of 300 yuan/ton. In the past two days, the market order taking phenomenon has improved. In addition, the monomer factory is actively adjusting the operating rate and moderately reducing the supply pressure. As of October 26, the domestic market price of silicone DMC has referred to 17600-18000 yuan/ton.

In terms of upstream metal silicon, since October (10.1-10.25), the domestic metal silicon (product name: 441 #) market has been running steadily and upward. On October 25, the reference price of metal silicon was 21690 yuan/ton, up 2.02% compared with October 1 (21260 yuan/ton).

Prediction of the future trend of silicone DMC market

At present, the trading and investment atmosphere in the silicone DMC market is moderate. Towards the end of the month, Shandong’s big factories have continuously raised the price of silicone DMC to give the industry some confidence. The silicone DMC data analyst of the business community believes that in the short term, the domestic silicone DMC market will mainly operate stably and in a consolidated way, and more attention should be paid to the changes in the information on the supply and demand side.