Recently, the domestic silicone market has ushered in an unexpected "spring breeze". Amidst the smoke of the tariff war, primary shaped polydimethylsiloxane (the main component of organosilicon) was unexpectedly included in the US tariff exemption list, bringing a touch of warmth to the industry. However, this has not prevented the continuous decline in the domestic DMC (dimethylcyclosiloxane) market price. The current average transaction price has fallen to 13350 yuan/ton, a decrease of 250 yuan from the previous working day, and the market has a strong wait-and-see sentiment.
Faced with high inventory pressure, although individual factory quotations remain stable at a high level, there is more room for negotiation in actual transactions, and downstream enterprises generally adopt price cutting strategies, only making up for urgent needs when prices are low. The decline in the price of raw material silicon metal has further intensified the bearish expectations in the market. The supply side focuses on destocking, while the demand side maintains a cautious attitude, resulting in an overall weak supply-demand pattern in the market.
At the same time, the United States has once again escalated its tariff policy towards China, announcing higher tariffs on dozens of countries and regions, including China, with a tariff rate of up to 34% on China (including Hong Kong and Macau). However, the exemption of organosilicon has brought a glimmer of hope to the industry, but it has also sparked more speculation and concerns in the market about future tariff policies.