Recently, the domestic organosilicon market has shown a clear supply and demand game. On the one hand, transaction prices have eased, prompting downstream buyers to replenish their inventories at low prices. On the other hand, with the continued contraction of supply and rising costs, most monomer manufacturers have maintained a firm willingness to maintain prices, resulting in a phased adjustment in the market.
In terms of pricing, since mid-March, the silicone market has seen a slight price reduction of 200-300 yuan/ton. This initially triggered a wait-and-see attitude among mid- and downstream customers. However, with the continued rise in raw material prices and the resulting strengthening of cost support, the purchasing sentiment of mid- and downstream customers began to shift. Since last week, some mid- and downstream enterprises have begun to actively purchase goods at lower prices to meet their immediate needs. This week, the overall pace of restocking for immediate needs has further accelerated. According to market feedback, some downstream enterprises have completed phased restocking based on their own production plans, which has provided some support to market demand in the short term and alleviated the previous downward pressure on prices.
On the supply side, some organosilicon monomer manufacturers currently have ample pre-sale order reserves. Supported by this, they maintain a firm stance on price increases. Some monomer manufacturers have even suspended quotations, planning to resume normal pricing after the industry conference in early April, reflecting a cautious attitude towards the future market. Meanwhile, the industry's routine emission reduction supervision continues to be strictly enforced, with monomer plants strictly controlling production capacity according to emission reduction requirements. This, coupled with some monomer manufacturers initiating periodic maintenance, has further contracted supply, providing strong support for monomer plants to maintain prices.
From an overall market perspective, the restocking efforts of midstream and downstream companies, coupled with supply-side contraction, have effectively alleviated market supply and demand pressures in the short term, strengthening price support. Furthermore, with the industry conference approaching in early April and upstream companies continuing to express bullish expectations, the silicone market price is expected to remain relatively strong in the short term. Going forward, close attention should be paid to the outcome of the industry conference, feedback from downstream markets, and changes in demand.
