1. DMC price range fluctuates, regional differentiation is significant
This week, the organic silicon DMC market showed the characteristics of "regional fragmentation and widening price gap". According to the data of China Report Hall, the price of first-grade DMC of Shandong Dongyue Chemical in Liaocheng City, Shandong Province is 11,500 yuan/ton, while the price of the same grade product of Luxi Chemical is 13,000 yuan/ton, with a price difference of 1,500 yuan/ton. Shanghai Nonferrous Network monitoring shows that the national mainstream quotation range has narrowed to 11,400-12,000 yuan/ton, which is about 5% lower than last week. This differentiation is mainly due to regional supply and demand mismatch: Shandong Dongyue Chemical seizes market share through low-price strategy, while Luxi Chemical relies on scale effect to maintain premium ability.

2. Inventory pressure and price-supporting game coexist
The current industry inventory shows the characteristics of "structural imbalance". On the one hand, the leading enterprises rely on pre-sale orders to control inventory pressure, and some enterprises even try to raise prices slightly to test the market reaction; on the other hand, small and medium-sized monomer plants are forced to relieve pressure by making concessions due to the weakening of downstream stocking demand and rising inventory levels. Beijing Guohua New Materials Technology Research Institute pointed out that although the decline in the prices of raw materials such as metal silicon and methanol further aggravated the bearish sentiment, the monomer plants successfully maintained the DMC quotation in the range of 11,400-12,000 yuan/ton through a joint price-supporting strategy, showing strong resilience against price drops.

3. The downstream enters the inventory digestion period, and the new order transaction turns weak
After the previous stage of replenishing inventory, the purchasing rhythm of downstream enterprises has slowed down significantly. The slowdown in demand growth in terminal industries such as photovoltaics and construction has led to a weaker atmosphere for new orders for downstream silicone products (such as raw rubber and 107 rubber). According to data from Shanghai Nonferrous Network, this week, the opening price of DMC in the online mall of a monomer enterprise in Shandong was 12,800 yuan/ton, a decrease of 100 yuan/ton from last week, but the actual transaction was still mainly low-priced. This phenomenon of "quantity-price divergence" reflects that the downstream is cautious about the future market and prefers high-frequency, small-batch purchases to avoid risks.

4. The raw material side is under pressure, and the cost support is weakened.
The prices of metal silicon and methanol in the upstream of the silicone industry chain continued to weaken, further weakening the cost support. On May 16, 2025, the main contract of domestic industrial silicon fell by more than 3%, the spot reference price fell to 9,552 yuan/ton, and the price of the lowest delivery product #553 fell to 8,300 yuan/ton. This cost-side pressure is transmitted to the silicone monomer link, resulting in a narrowing of corporate profit margins. Although some companies have tried to pass on costs through price-supporting strategies, the effect is limited in the context of weak demand.