Entering Thursday, the current organic silicon market continues to experience weak and volatile operations. From a price perspective, there has been no significant movement on the surface of individual factories, and the DMC price has remained stable at 13400-13900 yuan/ton. However, as far as we know, the DMC transaction price of some individual factories was 13300 yuan/ton yesterday, a slight drop of 100! This undoubtedly deepens the bearish mentality of downstream enterprises, coupled with the high operating rate of over 70% of individual factories, making it difficult for the supply side to alleviate. The demand side is also difficult to anticipate large-scale hoarding during the off-season of terminal consumption. In the short term, with significant negative feedback on orders, the pattern of supply exceeding demand on the market intensifies. However, after a slight discount yesterday, the low-priced transactions slightly improved, and some individual factories may follow up slightly in the future. If the main large factories also enter the bidding market, there is a risk of further exploration in DMC.
107 glue and silicone oil market: DMC fluctuates locally, but major manufacturers remain stable in operation. 107 glue and silicone oil companies are also hesitant to act recklessly. This week, the mainstream quotation for 107 glue is 13700-13800 yuan/ton, and the quotation for silicone oil is 14700-15800 yuan/ton, temporarily stable in operation. On the supply side, the top 107 rubber companies have sufficient pre-sale orders and a strong willingness to maintain stable quotations in the short term. However, some of the other individual factories are self used, while others are mainly supplied to core customers. The inventory pressure is still controllable, and there is no intention of adjusting prices first. It is expected that the 107 rubber market will maintain stable operation this week.
In terms of silicone oil, most silicone oil companies are not actively purchasing due to their own DMC inventory still waiting to be digested, adding or facing the risk of accumulation. At the same time, under the low price suppression of two large monomer factories, small and medium-sized silicone oil enterprises are constrained by costs and have no intention of bidding. However, the high price transaction performance is average, and the operating pressure continues to escalate. If DMC is slightly reduced, small and medium-sized silicone oil enterprises will also have little room for price adjustment, and the short-term stability expectation is high.
In terms of foreign silicone oil: Recently, foreign brand silicone oil transactions have seen a narrow decline. However, compared to domestic silicone oil prices, the prices of silicone oil for foreign giants are still relatively high, and customers focus on the mid to high end market. Currently, foreign brand methyl silicone oil agents are reporting 18000-19000 yuan/ton, maintaining a stable and stable situation.