As the new week kicks off, the organosilicon market remains in a "price-for-volume" operation mode. Specifically, with the end of the month approaching and the traditional "Golden September and Silver October" peak demand season drawing near, some midstream and downstream enterprises have seen a slight boost in sentiment, and their willingness to bottom-fish for low-priced supplies has begun to emerge. However, the weak terminal demand situation has not improved, and the market is still in the phase of digesting previous supplies. As a result, the overall actual transaction performance is mediocre, with no significant volume growth.
From the perspective of monomer manufacturers, they are currently facing dual pressures: on one hand, the acceptance of early pre-sold orders has gradually come to an end, and enterprises need to actively follow up on new orders to avoid the risk of inventory accumulation caused by continuous stockpiling; on the other hand, some monomer manufacturers have not achieved satisfactory order intake this month. To accelerate capital recovery, they have chosen to continue following the market downward trend and actively reduce inventory by increasing concession efforts. It is understood that in the past two trading days, the transaction prices of DMC (dimethylcyclosiloxane mixture) from several monomer manufacturers have fallen below RMB 11,000/ton.
Currently in the market, the mainstream quotation range of DMC is RMB 11,000-12,300/ton, and the actual transaction price can be flexibly negotiated based on the purchase volume. Comprehensively considering the supply and demand sides, the current organosilicon market is still in a pattern of oversupply. It is expected that the DMC market will witness another wave of concessionary promotion this week, and the price side may continue to adjust weakly.