On September 23, the silicone DMC market fell 4.89% in one day.

Price Trend

According to business association monitoring data, on September 23, the market of organosilicon DMC showed a downward trend. The average price of organosilicon DMC in several mainstream areas monitored by the data was 20,100 yuan/ton. Compared with last Friday, September 20, the market price of organosilicon DMC dropped by about 1,000 yuan/ton, with a decline of -4.89%.

II. Market Analysis

Products: After the weak operation of the silicone DMC market last week and the small reduction of quotations by sporadic manufacturers, on September 23, the silicone DMC market highlighted a large reduction of quotations by some manufacturers. Less than a week after the National Day, most of the single factories began to stop production or limit production. The factories are in low inventory, the market supply is tight, and logistics will also affect transportation during the National Day. Despite the above favorable conditions, DMC market still fails to maintain a high level. Facing the rising momentum and the continuous wait-and-see of downstream demand, many downstream enterprises are generally short-sighted on the post-holiday market. Towards the end of the month, the trading atmosphere is still low. In order to stimulate travelling volume and increase the enthusiasm of downstream purchasing, some manufacturers have the idea of yielding profits and delivering goods. At present, as of September 23, a few manufacturers’DMC has fallen below the 20,000 mark. The range is nearly 1000 yuan/ton. At present, DMC mainstream offer is around 2000-21000 yuan/ton, and sporadic low-price offer is around 1500 yuan/ton.

Industry chain: Silicone oil and silica gel Market of downstream products are affected by DMC’s weakness. At present, the market is stable, moderately and slightly declining. The trading atmosphere of the market is insufficient. Most downstream enterprises are bullish on the trend of silicone oil in the later period. They hold a wait-and-see attitude and are particularly cautious in purchasing. At present, there are no obvious signs of downstream stockpiling and the atmosphere of stock-up. Lengthy, more with the use of picking.

3. Future Market Forecast

Business analysts believe that before the festival, due to the low start-up rate, some factories with low inventory may still have a strong price intention, but more attention should be paid to whether the downstream demand can be increased and whether the downstream active reserve atmosphere can be really stimulated.