SunSirs: The Shandong Silicone DMC Market Traded Sideways in Early August

According to the commodity market analysis system of SunSirs, the price of silicone DMC in Shandong stood at 13,000 RMB/ton on August 17, 2026. This was essentially unchanged from the price on August 1, but represented a decrease of 1,700 RMB/ton—a drop of 11.56%—compared to the price on July 1 (when it was 14,700 RMB/ton).

Description of price trends

Data from the SunSirs commodity market analysis system indicates that in July, the price level of silicone DMC in the Shandong region trended steadily downward. Driven by weak supply and demand and a lack of market support, the price fell below the 14,000 RMB/ton mark, eventually dropping to 13,000 RMB/ton. Entering August, the Shandong silicone DMC market halted its decline and stabilized, shifting into a phase of consolidation and recovery; price adjustments were minimal, and market activity remained relatively subdued. As of August 17, the domestic market price for silicone DMC was hovering in the range of 13,000-13,200 RMB/ton.

Fundamental analysis

Supply side: Production cuts and reduced operating rates persist in the silicone DMC market; overall operating levels remain stable or may see a slight decline, with operating rates potentially contracting marginally. Supply remains tight, and the pace of spot market shipments is moderate, providing a degree of support to the market.

Demand side: Downstream players are currently focusing on consuming previously purchased raw materials, with many limiting procurement to essential needs. Overall downstream purchasing remains cautious, and the pace of restocking has slowed. However, the supply gap resulting from tightened supply may subsequently trigger a periodic surge in demand, lending momentum to a market trend that is stable with an upward bias.

Cost side: Market prices for #421 silicon metal—a key raw material for silicone DMC—are currently stable with slight upward adjustments, providing a floor of support for the market.

Market Outlook

Currently, the Shandong silicone DMC market is in a consolidation phase. Although downstream demand has not seen significant improvement despite supply constraints, there are underlying positive factors, and the market's floor support has strengthened. Consequently, analysts at SunSirs anticipate that prices in the Shandong silicone DMC market will likely remain stable with an upward bias in the short term, though close attention should be paid to developments regarding supply and demand.

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