The domestic organosilicon market posted a rally followed by a decline throughout May. At the start of the month, major monomer producers continued to cut operating rates. Supported by ample pre-sold orders, the market price of DMC moved steadily higher.
In the middle and late part of the month, leading manufacturers accelerated capital turnover by scrapping credit terms and adopting cash-only transactions. Meanwhile, they launched substantial preferential policies for 107 glue and raw silicone rubber, which disrupted the overall pricing system and caused a severe price inversion for the two products.
Towards the end of May, pre-sold orders were mostly delivered, leaving most monomer producers facing mounting pressure to secure new orders. To prevent excessive price declines, market participants reached a consensus: manufacturers slashed their relatively high offers, and actual transaction prices gradually aligned with those of leading players, narrowing the price gap across the industry. In addition, enterprises planned to implement production cuts from June to August, with the overall operating rate set to drop by 40%.
As of May 31, the mainstream quoted price of DMC stood at 14,800–15,100 yuan per ton, while the mainstream transaction price was 14,300–14,500 yuan per ton. The average DMC price for the whole month hit 15,097.37 yuan per ton, up 1.52% month-on-month and 24.52% year-on-year. Driven by low-priced supplies and production cut expectations, downstream and midstream buyers made moderate purchases to meet rigid demand. However, amid the traditional off-season, bearish sentiment prevailed across the market, and traders remained cautious about large-scale stockpiling.