I. Core Product Price Fluctuations: The DMC Market Shows Regional Differentiation and Short-Term Fluctuations
Organic silicone DMC (dimethylcyclosiloxane mixture) is a core raw material in the industry chain, and price fluctuations directly impact upstream and downstream costs. According to market monitoring data, DMC prices exhibited the following characteristics from September 8 to 14:
Significant regional differentiation: In Shandong Province, the main production area, Liaocheng Dongyue Chemical quoted 13,000 yuan/ton on September 8, while Luxi Chemical quoted 10,500 yuan/ton. The average price of domestically produced first-grade products was 13,500 yuan/ton. By September 13, Dongyue Chemical maintained its price at 13,000 yuan/ton, while Luxi Chemical lowered it to 10,500 yuan/ton, demonstrating diverging pricing strategies among leading companies. Short-term downward volatility: Nationwide, manufacturers' quoted prices were 10,300 yuan/ton on September 9th and further declined to 10,300 yuan/ton on September 14th (some data sources indicate even lower levels). Mainstream quotes in the East China market also gradually moved lower, down from the 10,700-11,300 yuan/ton range on September 8th, reflecting cautious downstream purchasing and inventory digestion pressure.

II. Chain Linkage Effect: Upstream industrial silicon remains stable, while downstream sentiment remains cautious.
Limited upstream support: After the main contract closed at 8,665 yuan/ton on September 10th, industrial silicon futures prices remained within a wide range, while spot prices remained stable, without significantly impacting DMC costs.
Weak downstream demand: Derivatives such as silicone waterproofing agents have stable prices (for example, the price of waterproofing agent in Dongying, Shandong Province, was 4 yuan/kg on September 8th). However, DMC trading activity remained subdued at high levels, with downstream companies primarily focusing on essential orders and adopting a wait-and-see approach, resulting in a prolonged market digestion period.

III. Trend Outlook: Short-term Pressure, Medium- to Long-Term Focus on Optimizing Supply and Demand Structures
The current market is traditionally in the off-season, and coupled with the expected expansion of industry capacity, DMC prices may continue to fluctuate in the short term. In the medium to long term, with recovering demand in new energy, electronics, and other sectors, and environmental protection policies eliminating outdated production capacity, the silicone market is expected to gradually return to a balanced supply and demand, and price fluctuations will narrow.