Global Dimethylcyclosiloxane (DMC) Prices Surge Amid Positive Demand and Surging Feedstock Costs

In the global market, the price of Dimethylcyclosiloxane (DMC) is witnessing bullishness, driven primarily by strong demand from the downstream market and increased ex-quotation prices from key players due to depleting profit margins. The rising feedstock prices and a surge in demand for silicone rubber have created a challenging scenario for manufacturers, who are now struggling to balance production and inventory management. These factors have collectively contributed to the upward trend in DMC prices. The growing demand for silicone rubber in various applications, coupled with the pressure on manufacturers to maintain profitability amidst increasing raw material costs, has significantly influenced the global market pricing for DMC.

In the German market, the price of Dimethylcyclosiloxane (DMC) is on the rise due to heightened demand as market participants stock up on inventories. Elevated silicon metal prices, which are a key raw material for DMC, have remained high in Q2, contributing to the price increase. Additionally, the silicone rubber market, a major end-use sector for DMC, is seeing robust demand, which supports the higher need for DMC. Despite slowdowns in the automobile and construction industries in Europe, strong demand from international markets has balanced DMC consumption in the region. Furthermore, Wacker Chemie AG is investing in a new production facility in the Czech Republic to boost its silicone specialties output, reflecting optimism about continued market demand. Overall, the market is experiencing a bullish trend, with suppliers building inventories in anticipation of further price increases in the DMC and broader silicones sector.

In the asian market particularly China, the price of DMC continued to showcase bullishness in the price. In the feedstock market the price of the major feedstock particularly Silicon metal witnessing a marginal decrement at upper levels. While Methanol continued to decline. In the downstream market the Chinese Automobile and the Construction is underperforming while the other countries in the asian market like India, Japan supported the demand for the DMC from the positivity in the downstream market demand. According to China's Customs Statistics, imports of silicones in primary foams totalled 48,794.583 metric tons in May, indicating a 6.8% increase from April. Additionally, Shin-Etsu Chemical Co., Ltd., based in Tokyo, will revise its silicone prices globally due to rising costs in raw materials, energy, logistics, and plant operations. Increased expenses in manufacturing, logistics, and auxiliary materials have led to this decision, as internal cost-reduction efforts are insufficient. This decision of the price rise will ultimately influence the increase in the price of all Silicones products influencing DMC price accordingly.

According to ChemAnalyst, the price of Dimethylcyclosiloxane (DMC) is expected to rise due to increasing global demand from downstream markets and uptrend in the feedstock price. This anticipated bullish trend in the DMC price is supported by market participants actively accumulating inventories. Additionally, rising prices from manufacturers are likely to further drive DMC prices upward.