Recently, the market for organic silicon has remained sluggish, with prices continuously falling and hitting new lows, attracting widespread attention in the industry. Among them, DMC prices have entered the era of "10000+", and related products such as raw rubber, 107 rubber, and silicone oil cannot escape the fate of falling. A new round of decline has already arrived.
Last week, DMC prices continued to decline. From a cost perspective, the performance of the silicon metal market is weak and stable. Although methanol prices have risen narrowly, overall cost support for DMC remains weak. In terms of supply, the operating load of individual factories remains at a high level, and inventory pressure continues to increase. To alleviate inventory pressure, individual factories have a strong willingness to accept orders and have adopted price reduction and promotion strategies. However, market demand is not satisfactory, with weak demand for essential goods and severe bearish sentiment among downstream buyers, resulting in a strong wait-and-see atmosphere. In this context, the mainstream quotation range for DMC is 10500-11500 yuan/ton, with an actual average transaction price of around 10600 yuan/ton, which has significantly declined compared to the previous period.
The decline in DMC prices has had a chain reaction on downstream products. The prices of raw rubber, 107 rubber, mixed rubber, silicone oil, etc. have remained stable with partial declines. Due to the possibility of further decline in raw material DMC, downstream enterprises have become increasingly cautious and have low purchasing enthusiasm. It is expected that the price of organic silicon will continue to operate in a stable to weak trend in the short term.
In addition to organic silicon monomers and their downstream products, the market for gas-phase silica is also not optimistic. Last week, the market for gas-phase silica continued to decline, with stable prices but occasional drops, and the market's trading center further shifted downwards. From the perspective of raw materials, the price of methyl trichlorosilane has remained stable for the time being, but the supply of silicon tetrachloride is tight, leading to an upward trend in price. However, fluctuations in raw material prices have not prevented the decline of the gas-phase silica market, and weak market demand remains the main factor restricting its price.
Overall, the current organic silicon market is in a situation of oversupply, with insufficient cost support and weak downstream demand, leading to a sustained decline in prices. For enterprises, it is necessary to closely monitor market dynamics, arrange production plans reasonably, and optimize inventory management to cope with market uncertainty. At the same time, downstream buyers can also seize the timing of procurement and reduce procurement costs according to their own needs. In the future, whether the organic silicon market can stop falling and stabilize depends on the improvement of supply and demand relationship and the support of costs.