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Organosilicon Market Continues Downtrend: DMC Prices Hit Low Levels, Industry Loss Rate Exceeds 80%

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Last week (August 10 to August 17), the organosilicon market continued its previous downward trend. The mainstream transaction price of DMC (dimethylcyclosiloxane mixture), a core product, further dropped to the range of 11,000-12,500 yuan/ton, a decrease of 500-1,000 yuan/ton compared with the previous week. During the weekend, the auction price of DMC from a benchmark enterprise in Shandong remained stable at 11,000 yuan/ton, while enterprises in Jiangxi temporarily maintained their existing quotations without further downward adjustments, due to cost pressures. From the perspective of segmented products, the market quotations during the same period showed the following levels: 107 rubber was 13,000-13,300 yuan/ton, raw rubber was 13,200-13,500 yuan/ton, and silicone oil was 14,000-14,500 yuan/ton.
An analysis of market supply and demand reveals that the supply side presents the characteristics of "high operating rate + partial maintenance + differentiated price stabilization efforts": the overall operating rate of the organosilicon industry remained at a high level of over 75%. Meanwhile, some production units in Hubei and Zhejiang provinces entered the scheduled rotation maintenance period as planned; during the weekend, major monomer manufacturers released signals to stabilize market prices, but the intensity of price support varied among different enterprises, and their willingness to maintain prices was not consistent. On the demand side, the market remained weak: downstream enterprises mainly focused on digesting their previous inventory. The strong bearish sentiment in the market directly led to low purchasing willingness of enterprises; even for rigid demand, the transaction of orders was weak, and the overall trading rhythm of the market slowed down significantly.
In terms of costs and profits, the price of raw material metallic silicon showed a volatile downward trend. However, organosilicon monomer manufacturers generally faced the pressure of cost inversion (i.e., product selling price was lower than production cost), and the scope of losses in the industry further expanded, with the current loss rate exceeding 80%. It is worth noting that the current DMC price has entered the historical low range. Against this background, some enterprises have begun to show a "resistant sentiment towards price cuts", and their willingness to further reduce prices has weakened.

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