According to the monitoring data of SunSirs, as of May 30, the average price of silicone DMC market quotations in the mainstream areas of the data monitoring was 26,666 RMB/ton, compared with May 1 (the average reference price of silicone DMC was 27,600 RMB/ton), the average price was lowered by 933 RMB/ton, a decrease of 3.38%.
Analysis review
In early May, the domestic silicone DMC market declined sharply, with a half-month drop of 3.74%
In early May, after the return of Labor Day, the domestic silicone DMC market experienced a sharp decline, and the market was full of negative voices. Manufacturers accumulated inventory within a few days of the holiday. After the holiday, factory sales at a cut-price were common. Some factories began to drastically reduce the ex-factory price of silicone DMC, with a maximum reduction of more than 1,000 RMB/ton. However, the lower prices did not bring downstream large-scale replenishment. The downstream still maintained just-needed procurement, and the overall trading atmosphere was cautious As of May 15th, the mainstream market quotation of silicone DMC was around 25,500-27,200 RMB/ton, and the low-end quotation dropped to 25,200RMB/ton. Compared with the price at the beginning of the month, the price of silicone DMC dropped by 3.74% in half a month.
In late May, although the silicone DMC market rebounded for a while, the overall market still fell
In late May, the domestic silicone DMC market sentiment recovered, mainly due to the impact of the environmental policy. In late May, the operating rate of manufacturers decreased, the available spot on the market was tight, the phenomenon of market closures increased, and the overall trading atmosphere gradually warmed. Beginning on the 17th, some factories continued to increase the ex-factory price of silicone DMC. In just four days, the ex-factory price of silicone DMC returned to the highest value in the market for the month. According to the data monitoring of SunSirs, on the 21st, the ex-factory price of silicone DMC referred to 27,100 RMB/ton. Compared with the 15th, the average price increased by 534 RMB/ton, an increase of 2.01%.Among them, the organic silicon DMC of a factory in Shandong had the largest increase, with an increase of 1,600 RMB/ton. On the 21st, the mainstream price of silicone DMC market was around 26,800-27,500 RMB/ton.
However, after the silicone DMC price stayed at the high level for a few days, on the 24th, individual factories in Shandong lowered the silicone DMC ex-factory price again to 25,800 RMB/ton, and the reduction was 1,000 RMB/ton. The sharp decline in prices brought a heavier wait-and-see sentiment to the market. Many manufacturers continued to close the market without reporting, and the downstream was also cautious about the market. Until the last few days of the month, the market recovered slightly, but it did not cause a big rise. As of the 31st, the ex-factory price of silicone DMC was 26,000-27,300 RMB/ton, and the average price was 26,666 RMB/ton. Compared with the price at the beginning of the month, the overall market for silicone DMC declined in May, with a decrease of 3.38%.
On the downstream side, the overall market situation of downstream 107 glue and silica gel in May was also weak. The support from the raw material silicone DMC had gone, and the market trading atmosphere was normal, but the low operating rate gave the market a certain support. The 107 glue market was generally stable and weak. As of the 31st, the factory quotation of 107 glue was referenced at 27,000-28,000 RMB/ton around.
Market outlook
At the end of May, the silicone DMC market rebounded slightly, the overall atmosphere improved, downstream purchased on demand, the adjustment of raw materials showed a good degree of acceptance, and the confidence of the silicone DMC industry has recovered. Therefore, the analysts of SunSirs believe that in June, the domestic silicone DMC market will continue to move steadily and upward, and more attention needs to be paid to changes on the supply and demand side.
