This week, the domestic silicone oil market showed a general upward trend, with the price range of new silicone oil rising to 15900-16300 yuan/ton, a month on month increase of 300-500 yuan. Cracking material silicone oil (excluding tax) was also reported at 12700-13800 yuan/ton, an increase of 100-200 yuan month on month. Behind this wave of price increases is the acceleration of manufacturers' shipping pace and the relatively sufficient inventory of demand side enterprises.

With the increase in prices, manufacturers with spot inventory have become more proactive in shipping, and some manufacturers even hold onto their goods until prices rise. Traders, on the other hand, rely on sales for procurement, leading to a rebound in market transaction activity. Some companies with low inventory have raised the price of silicone oil to cope with market changes.
On the supply side, mainstream production enterprises have significantly accelerated their shipment pace and significantly digested inventory. About 20% of manufacturers adopt a strategy of controlling quantity and selling cautiously, with a bullish outlook on the future market. Spot companies have a strong willingness to adjust prices, and some companies have updated their quotes multiple times within the day. This situation exacerbates market volatility and uncertainty.
Looking ahead to the future, as new material prices continue to rise, cracking material companies have successfully taken on some substitute orders with their price advantages. If new materials continue to rise in the future, the market share of cracking materials is expected to further expand. At the same time, attention should be paid to the test of downstream acceptance caused by the continuous increase in upstream raw material prices, as well as risk factors such as price inversion pressure on similar products in overseas markets.