Price trend
According to the data monitoring of SunSirs, as of May 31, the average price of the silicone DMC market quoted in the mainstream data monitoring area was around 15,533 RMB/ton. Compared with May 1, the average price increased by 200 RMB/ton, an increase of 1 %; compared with before Labor Day (April 26), the average price rose by 900 RMB/ton, an increase of 6.15%. From April 26 to May 31, the maximum amplitude of silicone DMC was 6.15%.
Analysis review
Affected by the May Day holiday, downstream users actively entered the market to replenish before the holiday, the market demand increased, the transaction atmosphere was good, and the manufacturers shipped smoothly. Most monomer factories increased the DMC factory quotation and the increase range was 200-500 RMB/ton. Until May 6, the average reference price of the silicone DMC market has risen to around 15,330 RMB/ton. After the holiday, market demand has weakened, prices have been restrained, manufacturers have blocked shipments, and inventories have gradually accumulated. Some manufacturers have been forced to lower their factory prices by 300-800 RMB/ton under inventory pressure. On the 7th, according to SunSirs data monitoring, the average factory price reference of silicone DMC was around 14,833 RMB/ton. The low-end quotations of individual factories dropped to around 14,200 RMB/ton, and the rare high-end prices were around 15,400 RMB/ton. In the following days, the market continued to decline. Until the 19th, as the price fell to a relatively low level, the downstream bargain-hunting entered the market, the market trading atmosphere improved, and the early inventory of the manufacturers was basically digested. In addition, the major monomer factories were eager to increase the price, and actively controlled the low-price market by reducing the operating rate. On the 20th, prices rose, and some manufacturers raised factory prices, ranging from 100-300 RMB/ton, and the market remained stable for a week. On the 29th, most monomer manufacturers raised the ex-factory price of DMC again, with a large increase. The average price rose to 15,533 RMB/ton, the average price was adjusted to around 500 RMB/ton, and the rare low-end factory price was 15,200 RMB/ton. Some high-end offers rose to 16,000 RMB/ton.
Upstream metal silicon market: The upstream metal silicon overall trend rose steadily and slightly in May, bringing certain favorable support to the silicone DMC market. In May, the price of metal silicon 441# was relatively stable, but the game dynamics between supply and demand still existed. On the supply side: Silicon companies were not performing as expected, and their stocks were lower than expected, and silicon companies were willing to increase prices. Many start-up enterprises have adopted the pre-sale mode, and the production of single-row orders has locked production capacity ahead of schedule. Sales side: The export market in May was weak, with a small amount of demand for procurement mainly; downstream demand in the domestic market was relatively picking up, due to doubts about terminal demand and expectations for raw materials being empty, raw material procurement was cautious, on-demand and raw material inventory was low. On May 31, the price of 441# silicon in various regions: the price range in Fujian was 10,600-10,700 RMB/ton, the price range in Sichuan was 10,900-11,000 RMB/ton, the price range in Kunming was 10,800-10,900 RMB/ton, the price range in Shanghai was 11,500-11,700 RMB/ton, the trading range in Tianjin Port was 11,100-11,200 RMB/ton, and the price range in Huangpu Port was 11,100-11,200 RMB/ton.
Market outlook
SunSirs analysts believe that the rally at the end of May has brought a strong touch to the DMC market in May, and also paved the way for subsequent market trends. It is expected that the silicone DMC market will continue to rise steadily in June.
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