This week, the silicone adhesive market experienced a significant increase, with DMC (dimethyl cyclic siloxane) spot prices breaking through the 14000 yuan/ton mark. Several leading silicone adhesive companies have confirmed the news of product price increases, with the increase generally ranging from 5-10%. Behind this wave of price increases is the frequent occurrence of large orders from channel partners actively replenishing their inventory, demonstrating the strong demand for silicone adhesive in the market.
As the core link of silicone adhesive sales, distributors have always been highly valued by enterprises. In this wave of price increases, channel partners have become a key force leading sales. With the continuous increase in market demand, competition among silicone adhesive companies is becoming increasingly fierce. Building a competitive moat and increasing market share have become important tasks for silicone adhesive companies.

However, despite the booming market, seasonal differences have emerged on the demand side. Although it is approaching the traditional production and sales peak season in March, 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, indicating a tight supply situation in the market. 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 inventory transfer caused by maintaining low load operation of individual units.
Looking ahead, with the release of substantial demand in the terminal field, the silicone adhesive market is expected to continue to maintain a strong pattern. But in the short term, the DMC market will maintain a high consolidation trend, and in the future, we need to focus on the actual demand changes in the terminal field.