Domestic silicone monomer manufacturers currently hold sufficient pre-sale orders. Driven by seasonal restocking from midstream and downstream enterprises in late March, most orders have been scheduled until mid-April, with optimistic producers extending bookings to late April.
While downstream purchasing demand recovers, upstream supply continues to tighten. Key industry meetings earlier confirmed a mandatory production cut ratio of 35% across the sector from March to May. Centralized maintenance and load reduction plans among monomer producers in April will further ease supply pressure.
Cost support remains strong as methanol, a core raw material, surges sharply. Since the Middle East conflict, global methanol spot prices have increased widely. By March 20, CFR Southeast Asia methanol prices soared by 72%, hitting a five‑year high. Force majeure at the world’s largest methanol production base widened supply gaps and fueled further price hikes.
Export pressure is rising: export tax rebates for primary polysiloxane will be canceled starting April 1. Higher oil prices push freight rates up by 10%–30%, and even 50% on certain routes, lifting overall export costs in April.
Supported by multiple factors, manufacturers maintain firm price intentions. Major DMC offers stay stable at 14,300 CNY/ton with prolonged price suspensions. A further increase of 1,000 CNY/ton is expected following early signals in late March. Upcoming industry meetings will guide Q2 market trends and strengthen bullish sentiment.