Recently, the silicone adhesive market has experienced a sharp rise, with several leading silicone adhesive companies confirming product price increases of 5-10%. Behind this wave of price hikes is the structural tension caused by the mismatch between supply and demand.
This week, the domestic silicone market continued its strong pattern, but the demand side showed seasonal differences. Although the traditional production and sales peak season of March is approaching, the actual purchasing momentum downstream has not been significantly released, and the market has a strong wait-and-see atmosphere. Most midstream processing enterprises have completed their raw material reserves before mid month, with limited acceptance of high priced sources, and have instead entered the inventory digestion cycle.

On the supply side, the pre-sale orders for DMC from major individual factories have been scheduled for 10-15 days. The mainstream transaction price in Shandong region remains stable at 13500 yuan/ton, while the quotes from manufacturers in Jiangsu, Zhejiang, and Southwest regions remain in the range of 14000-14300 yuan/ton. This supply-demand mismatch is mainly caused by the early consumption of market demand elasticity due to the early stocking cycle, as well as the transfer of inventory to the channel due to the maintenance of low load operation of individual devices.
Considering the supportive effect of current order inventory on prices, it is expected that the DMC market will maintain a high consolidation trend in the short term. In the future, it is necessary to focus on the release pace of substantive demand in the terminal field, especially in the areas of building sealants, silicone products, daily chemical products, and printing and dyeing.
At the same time, the silicone oil market is also showing a general upward trend. The quotation range for new silicone oil is between 15900-16300 yuan/ton, with a month on month increase of 300-500 yuan; Cracking material silicone oil is reported at 12700-13800 yuan/ton, an increase of 100-200 yuan month on month. With the increase in prices, manufacturers with spot inventory have become more proactive in shipping, and market transaction activity has rebounded.
However, it is worth noting that factors such as the continuous increase in upstream raw material prices testing downstream acceptance, as well as the progress of social inventory digestion and the pace of new production capacity deployment still need to be considered. In addition, the pressure of price inversion for similar products in overseas markets has also had a certain impact on the domestic market.