1. Analysis of silicone DMC price trends
From May 26 to June 1, the market price of silicone DMC showed significant fluctuations. On May 26, the ex-factory price of silicone DMC of Luxi Chemical was 11,400 yuan/ton; as of May 27, the price of first-grade DMC of Luxi Chemical in Liaocheng City, Shandong Province was adjusted to 11,300 yuan/ton, while another supplier quoted 13,500 yuan/ton. On May 28, the quotations of Shandong Dongyue Chemical and Luxi Chemical in Liaocheng City were 11,500 yuan/ton and 13,000 yuan/ton respectively, showing regional market price differences. On May 31, the price of Luxi Chemical rebounded to 11,800 yuan/ton, while Shandong Dongyue Chemical stabilized at 11,500 yuan/ton.

Price fluctuations are mainly affected by supply and demand and regional competition. The price of industrial silicon in East China continued to decline. On May 30, the price of SMM East China's non-oxygen 553# silicon fell to 8200-8300 yuan/ton, the price of oxygen 553# silicon fell to 8200-8400 yuan/ton, and the price range of silicone-specific 421# silicon narrowed to 10200-10600 yuan/ton. As the upstream raw material of silicone DMC, the downward trend of industrial silicon provides support for the cost side of DMC, but the regional quotation difference reflects the differentiation of corporate competition strategies.

2. Synergy of the silicone industry chain and market dynamics
In terms of industrial chain synergy, the market performance of silicone polyether defoamers is stable. On May 26, Hubei Quanxi Silicon Industry's 40 solid content product price was 4000 yuan/ton, highlighting the price stability of the subdivided field. In the photovoltaic industry chain, the price of polysilicon materials (dense materials) fell month-on-month, further confirming the price transmission pressure in the upstream link.

Industry dynamics show that China's silicone industry has entered a capacity expansion cycle. The production capacity of polysiloxane is expected to reach 3.22 million tons in 2024 and will exceed 4.17 million tons in 2028, with an average annual compound growth rate of 6.64%. The increase in industrial concentration and the accumulation of patented technologies form a dual support. As of June 2024, there are 336,867 domestic patents related to silicone technology, including 213,312 invention patents and 95,441 invention patents.

In the future, we need to pay attention to the transmission effect of industrial silicon price fluctuations on DMC costs, as well as the driving effect of changes in demand in the photovoltaic industry chain on downstream silicone applications. Driven by the dual forces of capacity expansion and technological innovation, the silicone market will maintain a dynamic balance.